REGISTERED NUMBER: 06905791 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
J S STOKES HOLDINGS LIMITED |
REGISTERED NUMBER: 06905791 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
J S STOKES HOLDINGS LIMITED |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Statement of Financial Position | 13 |
Company Statement of Financial Position | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Statement of Cash Flows | 18 |
Notes to the Consolidated Financial Statements | 19 |
J S STOKES HOLDINGS LIMITED |
COMPANY INFORMATION |
for the Year Ended 31 March 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 March 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
. |
REVIEW OF BUSINESS |
The year ended 31 March 2022 was an extremely successful year with the group benefiting from income from weddings deferred due to covid and a reduced temporary VAT rate. It is pleasing to see this year that sales across all income streams have increased. The directors are pleased with trading profits results given that there are now different exceptional circumstances affecting the industry. Such circumstances are, but not limited to, the ever-increasing energy prices, interest rate rises, minimum wage increases and food inflation. |
Group key performance indicators are as follows; |
2023 | 2022 |
Turnover | £ | 2,717,410 | 2,223,313 |
Gross Profit | % | 81.7 | 88.3 |
EBITDA* | £ | 207,421 | 255,666 |
* Earnings Before Interest, Tax, Depreciation and Amortisation, calculated as profit of the financial year, adding back interest receivable, interest payable, tax, depreciation and amortisation expense and non-recurring income i.e. Covid 19 support. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 March 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Key principal risks and uncertainties facing the group are: |
Competition |
We operate in an extremely competitive market and address this by offering a high-quality product tailored around the customer. We have the benefit of offering guests more than just the standard hotel as we have leisure, spa and golf facilities on site as well as the usual offerings. We have "something for everyone." |
Economic |
The group's operations are naturally sensitive to economic conditions, in particular consumer spending. A downturn in the economy could impact consumer spending and therefore trading performance. For non-wedding trade, the macroeconomic climate and localised factors such as tourist footfall and business occupancy all impact demand for bedrooms, food and beverage. However, the group has continued to demonstrate resilience post covid 19 restriction removal. |
Rising input costs, particularly food and labour, all have an impact on the group and can continue to reduce operating margins. |
Liquidity |
The directors must always maintain appropriate levels of funding for the group, and we have been able to maintain our post pandemic cash position. |
Human Resources |
Our employees are our most important asset and are fundamental to our success. The recruitment and retention of top-quality staff is our main priority. Post Covid there has been staff supply issues within the hospitality sector and unfortunately this continues to be an ongoing issue and will undoubtedly be for the foreseeable. |
Operational |
Delivery of the highest possible standards to our customers is of paramount importance. The group invests heavily in its staff, whilst investing and responding to customer feedback. The group is particularly susceptible to any fluctuations in staff availability within the sector. Accordingly, when there is short supply, we have relied on the use of agency staff, which is very expensive. High staff turnover has also meant that exceptionally high recruitment fees have been incurred. These two factors further adversely affect profitability. |
We are reliant on technology and information systems for all areas of the business which can adversely affect operations if they were to fail for any length of time. We work closely with our IT providers to ensure that systems are updated and tested regularly and have maintenance agreements in place for all key systems. |
Regulation |
The group operates in an industry subject to extensive regulation. A failure to comply with health and safety regulations (including food and fire legislation) or licensing obligations could lead to customers or employees being adversely affected, with a resulting reputational impact. We are confident that the group has adequate procedures in place to ensure compliance. Regular health and safety assessments are completed to ensure safety of our employees and customers. |
Other regulatory factors such as national minimum wage, licencing laws, duty and taxation all have an impact on demand and margins. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
GROUP STRATEGIC REPORT |
for the Year Ended 31 March 2023 |
FORWARD PLANNING |
The immediate goal of the group is to continue to maximise the profitability of the business and maintain the post pandemic recovery as much as possible. We will also continue to invest to improve our guest experience and our overall offering. This is evident in the recent capital spend in the main bar and members bar area to ensure our venue is appealing to our customers both old and new. This recent investment has already seen an increase in new customers and turnover as a direct result of this improvement. |
Future Developments |
We are continuing in this vain to ensure that all public areas within the main building are updated in the near future. Hopefully this more modern interior will appeal to a greater number of customers going forward. |
We have also benefited from the closure of a few similar local businesses that have not been able to continue in these difficult economic times. Interest rates being predominately the biggest risk factor in some of the local business closures and we are fortunate not to have any significant external borrowings. |
The immediate goal is to maximise the profitability of the group as much as possible. In addition to pursuing growth and modernising our facilities to enhance the guest experience of our customers. |
ON BEHALF OF THE BOARD: |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a holding company. |
The principal activities of its subsidiaries were as follows; |
1. J S Stokes and Co Limited - holding company. |
2. Sage Cottage Properties Limited - hotel, restaurant, golf and leisure club. |
3. J S Stokes Properties Limited - property company. |
4. Harchris Limited - dormant company. |
DIVIDENDS |
An interim dividend of 1.328 per share was paid on 31 December 2022. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 March 2023 will be £ 10,509 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J S STOKES HOLDINGS LIMITED |
Qualified opinion |
We have audited the financial statements of J S Stokes Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion section, the financial statements: |
- give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's profit for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for qualified opinion |
The group has adopted a policy of revaluing its freehold property. The last valuation was completed in 2006. Under section 17 of FRS 102 the company is required to obtain valuations with sufficient regularity to ensure that the carrying value does not differ materially from the fair value at the reporting date. The directors have informed us that they do not wish to obtain a valuation at the reporting date and accordingly our opinion is qualified in respect of non compliance with the requirement of FRS 102. |
Due to the directors' unwillingness to obtain this valuation we have been unable to obtain sufficient appropriate audit evidence and therefore are unable to form an opinion regarding the valuation of the freehold property. |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including 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 qualified 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J S STOKES HOLDINGS LIMITED |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J S STOKES HOLDINGS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows; |
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company's trading sector. |
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, environmental and health and safety legislation. |
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
- Identified laws and regulations were communicated within the engagement team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding of how fraud might occur, by; |
- Making enquires of management as to where they considered susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we; |
- Tested journal entries to identify unusual transactions. |
- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- Investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to; |
- Agreeing financial statement disclosures to underlying supporting documentation, |
- Reading minutes of meetings of those charged with governance. |
- Enquiring of management as to actual and potential litigation and claims; and, |
- Reviewing the correspondence with HMRC and any other relevant regulators and advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from the financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J S STOKES HOLDINGS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
CONSOLIDATED |
INCOME STATEMENT |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 2,717,410 | 2,223,313 |
Cost of sales | 497,483 | 371,014 |
GROSS PROFIT | 2,219,927 | 1,852,299 |
Administrative expenses | 2,062,347 | 1,650,111 |
157,580 | 202,188 |
Other operating income | 44,160 | 247,908 |
OPERATING PROFIT | 4 | 201,740 | 450,096 |
Interest receivable and similar income | 1,854 | - |
203,594 | 450,096 |
Interest payable and similar expenses | 5 | 1,221 | 790 |
PROFIT BEFORE TAXATION | 202,373 | 449,306 |
Tax on profit | 6 | 26,193 | 76,152 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 176,180 | 373,154 |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 176,180 | 373,154 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
176,180 |
373,154 |
Total comprehensive income attributable to: |
Owners of the parent | 176,180 | 373,154 |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | (267,925 | ) | (310,793 | ) |
Tangible assets | 10 | 6,335,017 | 6,217,789 |
Investments | 11 | - | - |
6,067,092 | 5,906,996 |
CURRENT ASSETS |
Stock | 12 | 19,567 | 12,932 |
Debtors | 13 | 98,644 | 105,045 |
Cash at bank and in hand | 766,899 | 808,199 |
885,110 | 926,176 |
CREDITORS |
Amounts falling due within one year | 14 | 734,728 | 789,868 |
NET CURRENT ASSETS | 150,382 | 136,308 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,217,474 |
6,043,304 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(2,529,948 |
) |
(2,545,655 |
) |
PROVISIONS FOR LIABILITIES | 18 | (24,206 | ) | - |
NET ASSETS | 3,663,320 | 3,497,649 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 10,925 | 10,925 |
Share premium | 3,629,351 | 3,629,351 |
Retained earnings | 23,044 | (142,627 | ) |
SHAREHOLDERS' FUNDS | 3,663,320 | 3,497,649 |
The financial statements were approved by the Board of Directors and authorised for issue on 10 October 2023 and were signed on its behalf by: |
Mrs S J O'Donnell - Director |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 10,509 | 10,509 |
The financial statements were approved by the Board of Directors and authorised for issue on |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 10,925 | (505,272 | ) | 3,629,351 | 3,135,004 |
Changes in equity |
Dividends | - | (10,509 | ) | - | (10,509 | ) |
Total comprehensive income | - | 373,154 | - | 373,154 |
Balance at 31 March 2022 | 10,925 | (142,627 | ) | 3,629,351 | 3,497,649 |
Changes in equity |
Dividends | - | (10,509 | ) | - | (10,509 | ) |
Total comprehensive income | - | 176,180 | - | 176,180 |
Balance at 31 March 2023 | 10,925 | 23,044 | 3,629,351 | 3,663,320 |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 March 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 March 2023 |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
for the Year Ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 159,216 | 537,423 |
Interest paid | (631 | ) | (225 | ) |
Interest element of hire purchase payments paid |
(590 |
) |
(565 |
) |
Net cash from operating activities | 157,995 | 536,633 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (164,513 | ) | (28,961 | ) |
Interest received | 1,854 | - |
Net cash from investing activities | (162,659 | ) | (28,961 | ) |
Cash flows from financing activities |
Loan repayments in year | (10,018 | ) | (4,167 | ) |
Government grants | - | 89,126 |
Capital repayments in year | (6,065 | ) | (6,337 | ) |
Amount introduced by directors | 10,511 | 10,509 |
Amount withdrawn by directors | (20,555 | ) | (10,115 | ) |
Equity dividends paid | (10,509 | ) | (10,509 | ) |
Net cash from financing activities | (36,636 | ) | 68,507 |
(Decrease)/increase in cash and cash equivalents | (41,300 | ) | 576,179 |
Cash and cash equivalents at beginning of year |
2 |
808,199 |
232,020 |
Cash and cash equivalents at end of year | 2 | 766,899 | 808,199 |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
for the Year Ended 31 March 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 202,373 | 449,306 |
Depreciation charges | 4,417 | (4,739 | ) |
Loss on disposal of fixed assets | - | 2,014 |
Government grants | - | (89,127 | ) |
Finance costs | 1,221 | 790 |
Finance income | (1,854 | ) | - |
206,157 | 358,244 |
Increase in stock | (6,635 | ) | (7,964 | ) |
Decrease/(increase) in trade and other debtors | 4,414 | (20,913 | ) |
(Decrease)/increase in trade and other creditors | (44,720 | ) | 208,056 |
Cash generated from operations | 159,216 | 537,423 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 766,899 | 808,199 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 808,199 | 232,020 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 808,199 | (41,300 | ) | 766,899 |
808,199 | (41,300 | ) | 766,899 |
Debt |
Finance leases | (22,663 | ) | 6,065 | (16,598 | ) |
Debts falling due within 1 year | (10,000 | ) | - | (10,000 | ) |
Debts falling due after 1 year | (35,833 | ) | 10,017 | (25,816 | ) |
(68,496 | ) | 16,082 | (52,414 | ) |
Total | 739,703 | (25,218 | ) | 714,485 |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the Year Ended 31 March 2023 |
1. | STATUTORY INFORMATION |
J S Stokes Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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£. |
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments 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 3 'Financial Statements Presentation' - Paragraph 3.17(d); |
- Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares; |
- 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. |
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £10,509 (2022: £10,509). |
Basis of consolidation |
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the twelve months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. |
The consolidated financial statements incorporate those of J S Stokes Holdings Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. |
All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the group'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. |
Estimated useful life of negative goodwill |
The annual amortisation charge for negative goodwill is sensitive to changes in the estimated useful life. The estimated useful life of negative goodwill is reassessed annually and is amended where necessary to reflect current estimates. |
Useful economic lives and residual value of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic life and residual values of the assets. The economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical conditions of the assets. |
Turnover |
Turnover represents the value of both golf and leisure club subscriptions receivable, food and beverage sales and accommodation services provided to customers in the year, excluding value added tax. |
Turnover from accommodation and other guest services is recognised when rooms are occupied and as services are provided. |
Turnover generated from golf and leisure subscription income is recognised on a straight line basis over the membership period to which it relates. |
Sales of food and beverages are recognised at the point of consumption when a right to consideration arises. |
Intangible assets |
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably. |
Amortisation 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: |
Negative goodwill - 20 years |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
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: |
Plant and machinery - 15% reducing balance |
Motor vehicles - 25% reducing balance |
Computer equipment - 3 years 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. |
It is the policy of the group to maintain its properties in a sound state of repair and to extend and improve selected properties from time to time. The directors, therefore, consider that the lives of the properties are so long and their residual values so high, that their depreciation is not significant. Accordingly, no depreciation is provided on freehold property and the depreciation charge for the year and the accumulated depreciation at the year end date, which would be required under FRS 102 Section 17 is not material. |
At the end of each reporting period end date the company reviews the carrying value of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists then the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss, if any. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset and 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 trade debtors, loans from group companies 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 group after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including trade creditors, accruals, loans from group companies and preference shares 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 receipts 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Fixed asset investments |
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available. |
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
Rents receivable |
Rents receivable are recognised in profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,294,644 | 1,021,231 |
Social security costs | 79,720 | 58,552 |
Other pension costs | 16,736 | 11,030 |
1,391,100 | 1,090,813 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 3 | 3 |
Hotel and leisure staff | 79 | 58 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 78,631 | 73,332 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
All directors' remuneration, shown above, occurred in Sage Cottage Properties Limited, a subsidiary company. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases | 40,450 | 41,924 |
Depreciation - owned assets | 42,670 | 38,129 |
Depreciation - assets on hire purchase contracts | 4,615 | - |
Loss on disposal of fixed assets | - | 2,014 |
Negative goodwill amortisation | (42,868 | ) | (42,868 | ) |
Auditors' remuneration | 17,300 | 14,275 |
Cost of stocks recognised as an expense | 497,483 | 371,014 |
Income from operating leases | 34,200 | 36,605 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | - | (45 | ) |
Loan | 631 | 270 |
Hire purchase | 590 | 565 |
1,221 | 790 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Deferred tax | 26,193 | 76,152 |
Tax on profit | 26,193 | 76,152 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 202,373 | 449,306 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
50,593 |
85,368 |
Effects of: |
Utilisation of tax losses | (42,448 | ) | (77,223 | ) |
Amortisation of negative goodwill | (8,145 | ) | (8,145 | ) |
Deferred tax | 26,193 | 76,152 |
Total tax charge | 26,193 | 76,152 |
One of the group's subsidiaries has trading losses of £238,194 (2022: £229,263) to offset against future trading profits. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 10,509 | 10,509 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Negative |
Goodwill | goodwill | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 | 602,755 | (857,361 | ) | (254,606 | ) |
AMORTISATION |
At 1 April 2022 | 602,755 | (546,568 | ) | 56,187 |
Amortisation for year | - | (42,868 | ) | (42,868 | ) |
At 31 March 2023 | 602,755 | (589,436 | ) | 13,319 |
NET BOOK VALUE |
At 31 March 2023 | - | (267,925 | ) | (267,925 | ) |
At 31 March 2022 | - | (310,793 | ) | (310,793 | ) |
At the reporting date the remaining amortisation period is seven years. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 | 6,000,000 | 568,438 | 15,508 | 157,184 | 6,741,130 |
Additions | - | 161,788 | - | 2,725 | 164,513 |
At 31 March 2023 | 6,000,000 | 730,226 | 15,508 | 159,909 | 6,905,643 |
DEPRECIATION |
At 1 April 2022 | - | 356,172 | 15,508 | 151,661 | 523,341 |
Charge for year | - | 42,991 | - | 4,294 | 47,285 |
At 31 March 2023 | - | 399,163 | 15,508 | 155,955 | 570,626 |
NET BOOK VALUE |
At 31 March 2023 | 6,000,000 | 331,063 | - | 3,954 | 6,335,017 |
At 31 March 2022 | 6,000,000 | 212,266 | - | 5,523 | 6,217,789 |
The net book value of tangible fixed assets includes £ 31,577 (2022 - £ 36,192 ) in respect of assets held under hire purchase contracts. |
11. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Sage Cottage Properties Limited |
Registered office: England |
Nature of business: Hotel, restaurant, golf and leisure club |
% |
Class of shares: | holding |
£1 Ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 572,458 | 449,655 |
Profit for the year | 133,321 | 330,287 |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
J S Stokes Properties Limited |
Registered office: England |
Nature of business: Property company |
% |
Class of shares: | holding |
£1 ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 5,809,427 | 5,809,427 |
J S Stokes and Co Limited |
Registered office: England |
Nature of business: Holding company |
% |
Class of shares: | holding |
£1 ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 26,929 | 26,929 |
Profit for the year | 10,509 | 10,509 |
Harchris Limited |
Registered office: England |
Nature of business: Dormant |
% |
Class of shares: | holding |
£1 ordinary | 100.00 |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 100 | 100 |
12. | STOCK |
Group |
2023 | 2022 |
£ | £ |
Stocks | 19,567 | 12,932 |
Stock consists of raw materials and consumables. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 11,709 | 17,364 |
Amounts owed by group undertakings | - | - |
Other debtors | 61,856 | 65,015 |
Deferred tax asset | - | 1,987 | - | - |
Prepayments and accrued income | 25,079 | 20,679 |
98,644 | 105,045 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | - | 1,987 | - | - |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 10,000 | 10,000 |
Hire purchase contracts (see note 17) | 5,690 | 6,065 |
Trade creditors | 85,999 | 124,297 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 91,530 | 107,041 |
Other creditors | 13,621 | 20,713 |
Directors' loan accounts | - | 10,045 | - | - |
Accrued expenses | 527,888 | 511,707 |
734,728 | 789,868 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 16) | 25,816 | 35,833 |
Hire purchase contracts (see note 17) | 10,908 | 16,598 |
Share capital treated as debt | 2,493,224 | 2,493,224 |
2,529,948 | 2,545,655 |
At the reporting date the company has insufficient cash reserves to redeem the preference shares. The Directors' consider that the probability of the company having sufficient cash reserves within twelve months of the reporting date to be remote; hence the preference shares are considered to be long term liabilities. |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 10,000 | 10,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 10,000 | 10,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 15,816 | 25,833 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 5,690 | 6,065 |
Between one and five years | 10,908 | 16,598 |
16,598 | 22,663 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 12,146 | 14,954 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 24,206 | - |
J S STOKES HOLDINGS LIMITED (REGISTERED NUMBER: 06905791) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | (1,987 | ) |
Charge to Income Statement during year | 26,193 |
Balance at 31 March 2023 | 24,206 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 10,925 | 10,925 |
Ordinary shares have full voting rights with regards dividends and distributions. |
20. | ULTIMATE CONTROLLING PARTY |
During the current and prior year the company was under the control of Mrs K Tyrer and her close family by virtue of their shareholding in the company. |