Company registration number 08746938 (England and Wales)
LIME LEISURE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
LIME LEISURE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
LIME LEISURE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
299,078
242,971
Current assets
Stocks
24,107
2,400
Debtors
4
118,379
69,993
Cash at bank and in hand
159,541
991,407
302,027
1,063,800
Creditors: amounts falling due within one year
5
(1,742,943)
(2,162,553)
Net current liabilities
(1,440,916)
(1,098,753)
Total assets less current liabilities
(1,141,838)
(855,782)
Creditors: amounts falling due after more than one year
6
(1,180)
Provisions for liabilities
7
(15,282)
(23,799)
Net liabilities
(1,157,120)
(880,761)
Capital and reserves
Called up share capital
8
200
200
Profit and loss reserves
(1,157,320)
(880,961)
Total equity
(1,157,120)
(880,761)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 22 November 2023 and are signed on its behalf by:
LA Wrout
Director
Company registration number 08746938 (England and Wales)
LIME LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information
Lime Leisure Limited is a private company limited by shares incorporated in England and Wales.
The registered office is Sycamore Lodge, Nookside, Grindon, Sunderland, Tyne & Wear, SR4 8PQ.
The business address is Derwent Manor Hotel, Allensford, Northumberland, DH8 9BB.
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 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. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of SLW (Holdings) Limited. These consolidated financial statements are available from its registered office, Sycamore Lodge, Nookside, Grindon, Sunderland, Tyne & Wear, SR4 8PQ.
1.2
Going concern
The directors have adopted the going concern basis in preparing these financial statements after a detailed review of the company's position, performance and cash flows. The directors recognise that the economic climate remains challenging, and the hospitality industry is highly susceptible to liquidity risk, however the company is reporting operating profit overall and the directors have a reasonable expectation that the company has access to adequate resources across the group to continue in operational existence for the foreseeable future.true
The directors have obtained a letter of support from the company's ultimate parent undertaking, SLW (Holdings) Limited, confirming that it will not demand repayment of the intercompany balance due until the company has sufficient resources. The support enables the company to operate as a going concern and to meet its obligations as they fall due for a period of not less than 12 months from the date on which the financial statements are approved by the directors. Given the resources available to SLW (Holdings) Limited, the directors have a reasonable expectation that additional funding will be made available to the company if needed. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable from the company's principal activities and is exclusive of value added tax. Income from the provision of hotel and conference facilities is recognised on the day of the event or for completed night stays in the normal course of hotel business. Income from restaurant and leisure facilities is recognised when the respective service is provided. Amounts relating to future accounting periods are carried forward within accruals and deferred income.
LIME LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.4
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:
Tenant improvements
10% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings and equipment
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.7
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.
LIME LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, 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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
LIME LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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, if considered material to the financial statements.
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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
Grant income includes amounts of £Nil (2022 - £48,779) receivable in relation to the Coronavirus Job Retention Scheme and £Nil (2022 - £26,000) receivable in relation to other local council coronavirus support.
LIME LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
85
73
3
Tangible fixed assets
Tenant improvements
Plant and machinery
Fixtures, fittings and equipment
Total
£
£
£
£
Cost
At 1 April 2022
186,067
130,435
566,320
882,822
Additions
101,177
3,956
39,503
144,636
At 31 March 2023
287,244
134,391
605,823
1,027,458
Depreciation and impairment
At 1 April 2022
110,797
102,376
426,678
639,851
Depreciation charged in the year
35,737
8,005
44,787
88,529
At 31 March 2023
146,534
110,381
471,465
728,380
Carrying amount
At 31 March 2023
140,710
24,010
134,358
299,078
At 31 March 2022
75,270
28,059
139,642
242,971
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
25,515
24,942
Corporation tax recoverable
3,788
Amounts owed by group undertakings
58,126
43,260
Other debtors
30,950
1,791
118,379
69,993
LIME LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
121,488
75,493
Amounts owed to group undertakings
1,191,939
1,427,600
Corporation tax
124,662
Other taxation and social security
117,680
92,651
Other creditors
311,836
442,147
1,742,943
2,162,553
Included within other creditors are amounts secured to the value of £1,518 (2022 - £4,334) in respect of hire purchase leases. The liabilities are secured on the assets to which they relate.
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
1,180
Included within other creditors are amounts secured to the value of £Nil (2022 - £1,180) in respect of hire purchase leases. The liabilities are secured on the assets to which they relate.
7
Provisions for liabilities
2023
2022
£
£
Deferred tax liabilities
15,282
23,799
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Paul Gainford
Statutory Auditor:
Sumer Auditco Limited
LIME LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
10
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Rent payable
2023
2022
£
£
Fellow subsidiaries
350,000
240,000
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Fellow subsidiaries
1,191,939
1,427,600
The following amounts were outstanding at the reporting end date:
2023
Balance
Provision
Net
Amounts due from related parties
£
£
£
Entities with control, joint control or significant influence over the company
7,000
-
7,000
Fellow subsidiaries
1,366,912
(1,315,787)
51,125
2022
Balance
Provision
Net
Amounts due in previous period
£
£
£
Entities with control, joint control or significant influence over the company
5,500
-
5,500
Fellow subsidiaries
1,018,216
(980,456)
37,760
11
Parent company
The immediate parent company is Derwent Manor Limited, a company incorporated in England & Wales.
The ultimate parent company is SLW (Holdings) Limited, a company incorporated in England & Wales.