WYCHWOOD INNS LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
Company Registration Number: 06489323
WYCHWOOD INNS LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
CONTENTS PAGES
Company information 1
Balance sheet 2 to 3
Notes to the financial statements 4 to 10
WYCHWOOD INNS LTD
COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023
DIRECTORS
Mrs T E Hunt
Mr P J Hunt
SECRETARY
Mrs T E Hunt
REGISTERED OFFICE
4 Witan Way
Witney
Oxon
OX28 6FF
COMPANY REGISTRATION NUMBER
06489323 England and Wales
WYCHWOOD INNS LTD
BALANCE SHEET
AS AT 31 MARCH 2023
Notes 2023 2022
£ £
FIXED ASSETS
Tangible assets 5 954,061 955,133
CURRENT ASSETS
Stock 9,411 8,515
Debtors 6 13,035 4,781
Cash at bank and in hand 71,857 124,421
94,303 137,717
CREDITORS: Amounts falling due within one year 7 97,502 116,128
NET CURRENT (LIABILITIES) / ASSETS (3,199) 21,589
TOTAL ASSETS LESS CURRENT LIABILITIES 950,862 976,722
CREDITORS: Amounts falling due after more than one year 8 538,922 566,790
Provisions for liabilities and charges 53,714 53,485
NET ASSETS 358,226 356,447
CAPITAL AND RESERVES
Called up share capital 40 100
Distributable profit and loss account 142,578 140,739
Revaluation reserve 215,608 215,608
SHAREHOLDERS' FUNDS 358,226 356,447
WYCHWOOD INNS LTD
BALANCE SHEET
AS AT 31 MARCH 2023
These accounts have been prepared and delivered in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
As permitted by S444 (5A) of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company’s Profit and Loss Account or Directors Report.
Signed on behalf of the board of directors
Mrs T E Hunt
Director
Date approved by the board: 12 October 2023
WYCHWOOD INNS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
1 GENERAL INFORMATION
Wychwood Inns Ltd is a private company limited by shares and incorporated in England and Wales. Its registered office and principal place of business are:
Registered office Principal place of business
4 Witan Way Wychwood Inn
Witney High Street
Oxon Shipton under Wychwood
OX28 6FF Oxon
OX7 6BA
The financial statements are presented in Sterling, which is the functional currency of the company.
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation of financial statements
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
Going concern
The accounts have been drawn up on the going concern basis. The company owes the directors £195,208, which could be required for repayment without notice. The company is therefore dependent upon the continued support of the directors. The directors do not consider their own support likely to be withdrawn.
If the going concern basis was not appropriate, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for additional liabilities that might arise and to reclassify fixed assets as current assets.
Revenue recognition
Turnover is measured at the fair value of consideration received or receivable and represents the value of goods sold and the provision of accommodation during the year, stated net of trade discounts and value added tax.
The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.
WYCHWOOD INNS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
Tangible fixed assets
Fixed assets, other than those stated below, are carried at cost less accumulated depreciation and accumulated impairment losses.
Freehold property is carried at it's revalued amounts, being fair value at the date of valuation less subsequent depreciation and impairment losses. Revaluations are made with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.
Any revaluation increase and/or decrease in the carrying amount of freehold property is recognised in the statement of changes in equity and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in the profit and loss account, in which case the increase is credited to the profit and loss account to the extent of the decrease previously expended.
Decreases that offset previous increases of the same asset are charged in the statement of changes in equity and debited against the revaluation reserve in equity; decreases exceeding the balance in the revaluation reserve relating to an asset are recognised in profit or loss. Each year the difference between depreciation based on the revalued carrying amount of the asset recognised in the profit and loss account and depreciation based on the asset's original cost is transferred from revaluation reserve to retained earnings.
Depreciation has been provided at the following rates so as to write off the cost or valuation of assets less residual value of the assets over their estimated useful lives.
Freehold property Not depreciated
Plant and machinery Reducing balance basis at 20% per annum
Furniture and fittings Reducing balance basis at 20% per annum
Motor vehicles Reducing balance basis at 25% per annum
Depreciation has not been provided in respect of land and buildings. The company adopts a policy of fully maintaining these and as such the residual value is so high, and the expected useful life is so long, that the depreciation charge would be immaterial, both in terms of the depreciation charged for the period and the cumulative charge to the balance sheet.
On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the profit and loss account, and included within administrative expenses.
WYCHWOOD INNS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
Financial Instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Impairment of non-financial assets
At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit and loss account.
Stocks are assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less cost to complete and sell. If an item of stock, or group of similar items, is impaired its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the profit and loss account.
If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.
Stock
Stock has been valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow-moving items. Cost comprises the cost of goods purchased valued on a standard cost basis.
The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised
WYCHWOOD INNS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
Debtors
Short term debtors are measured at transaction price, less any impairment.
Loans receivable are measured initially at fair value, net of transaction costs, and subsequently at amortised cost, less any impairment.
Creditors
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.
Leases
Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.
Payments applicable to operating leases are charged against profit on a straight line basis over the lease term.
Taxation
Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period.
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods based on current tax rates and laws. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.
Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Current and deferred tax assets and liabilities are not discounted.
Borrowing costs
All borrowing costs are recognised in the profit and loss account in the period in which they are incurred.
WYCHWOOD INNS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
Pensions
The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments in the balance sheet.
3 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
No significant accounting estimates and judgements have had to be made by the directors in preparing these financial statements.
4 EMPLOYEES
The average number of persons employed by the company (including directors) during the year was:
2023 2022
Average number of employees 23 15
5 TANGIBLE ASSETS
Freehold property Plant and machinery Furniture and fittings Motor vehicles Total
£ £ £ £ £
Cost
At 1 April 2022 900,000 76,475 84,073 32,223 1,092,771
Additions - 3,300 8,564 - 11,864
At 31 March 2023 900,000 79,775 92,637 32,223 1,104,635
Accumulated depreciation and impairments
At 1 April 2022 - 56,389 64,508 16,741 137,638
Charge for year - 4,234 4,831 3,871 12,936
At 31 March 2023 - 60,623 69,339 20,612 150,574
Net book value
At 1 April 2022 900,000 20,086 19,565 15,482 955,133
At 31 March 2023 900,000 19,152 23,298 11,611 954,061
The company has agreed a charge over the company's assets, as security for the loans.
WYCHWOOD INNS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
5 TANGIBLE ASSETS (continued…)
Freehold property was revalued during a previous year by an independent valuer on the basis of fair value. The directors believe the value at the year end represents the fair value of the property.
Freehold property
2023 2022
£ £
Historical cost 650,732 650,732
The freehold property included in the above fixed assets have been revalued as follows:
Freehold property
£
Original cost 650,732
Revaluation in 2017 249,268
900,000
The revaluation as disclosed affects the tax position of the company.
6 DEBTORS
2023 2022
£ £
Prepayments and accrued income 2,744 1,645
Other debtors 10,291 3,136
13,035 4,781
7 CREDITORS: Amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 46,238 46,017
Trade creditors 19,365 20,004
Taxation and social security 23,134 34,493
Hire purchase contracts and finance leases 6,081 5,946
Accruals and deferred income 1,996 2,116
Other creditors 688 7,552
97,502 116,128
WYCHWOOD INNS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
8 CREDITORS: Amounts falling due after more than one year
2023 2022
£ £
Bank loans and overdrafts 339,270 370,180
Hire purchase contracts and finance leases 5,038 10,641
Other creditors 194,614 185,969
538,922 566,790
Included in the amounts falling due after more than one year are the following amounts which are due in more
than five years:
2023 2022
£ £
Bank loans and overdrafts 112,020 143,539
9 SECURED DEBTS
The company has a bank loan of £346,151 with Barclays Bank Plc which is secured on all assets. This is being repaid at £4,155 per month.
10 RELATED PARTY TRANSACTIONS
During the year, the following transactions with related parties took place:
Mrs T E Hunt
Director 2023 2022
£ £
Advances to company 194,614 185,969
Mr P J Hunt
Director 2023 2022
£ £
Advances to company 594 1
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