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Registration number: SC403017

Econotel Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 August 2023

 

Econotel Limited

Contents

Company Information

1

Director's Report

2

Accountants' Report

3

Profit and Loss Account

4

Statement of Comprehensive Income

5

Balance Sheet

6 to 7

Statement of Changes in Equity

8

Notes to the Unaudited Financial Statements

9 to 14

 

Econotel Limited

Company Information

Director

Mr Bryan Livingston

Registered office

Ranald Hotel
41 Stevenson Street
Oban
Argyll
Argyll
PA34 5NA

Accountants

Jack MacDonald & Co
Cuan Aille
1 Aldersyde
Taynuilt
Argyll
PA35 1AG

 

Econotel Limited

Director's Report for the Year Ended 31 August 2023

The director presents his report and the financial statements for the year ended 31 August 2023.

Director of the company

The director who held office during the year was as follows:

Mr Bryan Livingston

Principal activity

The principal activity of the company is operating a hotel

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the director on 21 September 2023
 

.........................................
Mr Bryan Livingston
Director

 

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
Econotel Limited
for the Year Ended 31 August 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Econotel Limited for the year ended 31 August 2023 as set out on pages 4 to 14 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Econotel Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Econotel Limited and state those matters that we have agreed to state to the Board of Directors of Econotel Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Econotel Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Econotel Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Econotel Limited. You consider that Econotel Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Econotel Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Jack MacDonald & Co
Cuan Aille
1 Aldersyde
Taynuilt
Argyll
PA35 1AG

21 September 2023

 

Econotel Limited

Profit and Loss Account for the Year Ended 31 August 2023

Note

2023
£

2022
£

Turnover

 

790,840

585,565

Cost of sales

 

(329,565)

(288,718)

Gross profit

 

461,275

296,847

Administrative expenses

 

(267,514)

(303,629)

Other operating income

 

-

5,900

Operating profit/(loss)

 

193,761

(882)

Interest payable and similar expenses

 

(7,278)

-

Profit/(loss) before tax

3

186,483

(882)

Tax on profit/(loss)

 

(39,474)

(858)

Profit/(loss) for the financial year

 

147,009

(1,740)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Econotel Limited

Statement of Comprehensive Income for the Year Ended 31 August 2023

2023
£

2022
£

Profit/(loss) for the year

147,009

(1,740)

Total comprehensive income for the year

147,009

(1,740)

 

Econotel Limited

(Registration number: SC403017)
Balance Sheet as at 31 August 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

34,124

36,629

Current assets

 

Debtors

5

201,724

88,181

Cash at bank and in hand

 

144,778

115,846

 

346,502

204,027

Creditors: Amounts falling due within one year

6

(92,910)

(52,986)

Net current assets

 

253,592

151,041

Total assets less current liabilities

 

287,716

187,670

Creditors: Amounts falling due after more than one year

6

(27,500)

(41,463)

Net assets

 

260,216

146,207

Capital and reserves

 

Called up share capital

7

1

1

Capital redemption reserve

9

9

Retained earnings

260,206

146,197

Shareholders' funds

 

260,216

146,207

For the financial year ending 31 August 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the director on 21 September 2023
 

 

Econotel Limited

(Registration number: SC403017)
Balance Sheet as at 31 August 2023

.........................................
Mr Bryan Livingston
Director

 

Econotel Limited

Statement of Changes in Equity for the Year Ended 31 August 2023

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 September 2022

1

9

146,197

146,207

Profit for the year

-

-

147,009

147,009

Dividends

-

-

(33,000)

(33,000)

At 31 August 2023

1

9

260,206

260,216

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 September 2021

1

9

193,167

193,177

Loss for the year

-

-

(1,740)

(1,740)

Dividends

-

-

(45,230)

(45,230)

At 31 August 2022

1

9

146,197

146,207

 

Econotel Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023

1

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant & machinery

25% reducing balance basis

 

Econotel Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Econotel Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

2

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 10 (2022 - 10).

3

Profit/loss before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

8,530

12,209

 

Econotel Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023

4

Tangible assets

Other tangible assets
£

Total
£

Cost or valuation

At 1 September 2022

79,945

79,945

Additions

6,025

6,025

At 31 August 2023

85,970

85,970

Depreciation

At 1 September 2022

43,316

43,316

Charge for the year

8,530

8,530

At 31 August 2023

51,846

51,846

Carrying amount

At 31 August 2023

34,124

34,124

At 31 August 2022

36,629

36,629

5

Debtors

Current

2023
£

2022
£

Trade debtors

25,322

3,560

Other debtors

176,402

84,621

 

201,724

88,181

6

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

Trade creditors

8,949

24,085

Taxation and social security

78,457

23,000

Other creditors

5,504

5,901

92,910

52,986

 

Econotel Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

27,500

41,463

7

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

1

1

1

1

         

8

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

27,500

41,463

9

Dividends

   

2023

 

2022

   

£

 

£

Interim dividend of £33,000.00 (2022 - £45,230.00) per ordinary share

 

33,000

 

45,230

         

10

Related party transactions

 

Econotel Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 August 2023

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

36,000

33,354

11

Parent and ultimate parent undertaking

The company's immediate parent is Livingston Holdings (Oban) Limited, incorporated in Scotland.