TTG Inns Limited |
Notes to the Accounts |
for the year ended 31 March 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Rental income is recognised on a straight line basis over the term of the lease. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold buildings |
Nil |
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Refurbishment |
Over 20 - 25 years |
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Fixtures, fittings, tools and equipment |
over 4 years |
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Investments |
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Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
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Investment properties |
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The investment properties are revalued annually by the directors at fair value. Any surplus or deficit on revaluation is recognised in the profit and loss in the year they occur and are then transferred to the revaluation reserve. No depreciation is provided in respect of the investment properties. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. 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 future taxable profits. Deferred tax is measured using the 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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Grants received |
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During the prior year the company obtained grants from the UK government in relation to COVID-19. Grants are accounted for under the accrual model. Grants relating to revenue are recognised in other operating income on a systematic basis over the period in which the related costs are incurred. Grants for compensation are recognised in income in the period to which they become receivable. |
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2 |
Other operating income |
2023 |
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2022 |
£ |
£ |
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Machine income |
37,698 |
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39,656 |
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Rent received |
126,161 |
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124,992 |
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Sundry income |
11,907 |
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773 |
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Grants received |
- |
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69,254 |
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175,766 |
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234,675 |
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Grants received consist of Coronavirus Job Retentions Scheme claims from the UK Government along with Coronavirus local authority grants. All grants were applied for in line with the company meeting the necessary criteria. |
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3 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
15 |
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19 |
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4 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 April 2022 |
38,000 |
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Disposals |
(38,000) |
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At 31 March 2023 |
- |
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Amortisation |
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At 1 April 2022 |
38,000 |
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On disposals |
(38,000) |
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At 31 March 2023 |
- |
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Net book value |
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At 31 March 2023 |
- |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years. |
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5 |
Tangible fixed assets |
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Land, buildings and refurbishment |
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Plant and machinery etc |
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Investment Property |
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Total |
£ |
£ |
£ |
£ |
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Cost |
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At 1 April 2022 |
503,778 |
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98,085 |
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1,590,000 |
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2,191,863 |
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Asset reclassification / Additions |
(195,011) |
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- |
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258,607 |
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63,596 |
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Surplus on revaluation |
- |
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- |
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51,393 |
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51,393 |
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Disposals |
(308,767) |
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(66,311) |
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- |
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(375,078) |
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At 31 March 2023 |
- |
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31,774 |
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1,900,000 |
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1,931,774 |
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Depreciation |
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At 1 April 2022 |
103,430 |
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89,433 |
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- |
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192,863 |
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Charge for the year |
- |
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2,886 |
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- |
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2,886 |
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On disposals |
(103,430) |
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(66,312) |
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- |
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(169,742) |
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At 31 March 2023 |
- |
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26,007 |
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- |
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26,007 |
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Net book value |
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At 31 March 2023 |
- |
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5,767 |
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1,900,000 |
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1,905,767 |
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At 31 March 2022 |
400,348 |
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8,652 |
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1,590,000 |
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1,999,000 |
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The investment properties have been valued at £1,900,000 (2022 - £1,590,000). The value was based on the valuation of the directors' and is consider to be the fair value. |
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6 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
72,615 |
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84,149 |
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Other debtors |
7,496 |
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35,386 |
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80,111 |
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119,535 |
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7 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
- |
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42,366 |
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Trade creditors |
31,206 |
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41,160 |
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Taxation and social security costs |
59,496 |
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31,669 |
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Other creditors |
108,802 |
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84,595 |
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199,504 |
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199,790 |
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8 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
£ |
£ |
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Bank loans |
558,195 |
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638,158 |
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9 |
Loans |
2023 |
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2022 |
£ |
£ |
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Creditors include: |
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Amounts payable otherwise than by instalment falling due for payment after more than five years |
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558,195 |
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558,195 |
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Instalments falling due for payment after more than five years |
- |
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7,273 |
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558,195 |
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565,468 |
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Secured bank loans |
558,195 |
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558,195 |
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The bank loan is secured on one of the freehold properties. |
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10 |
Revaluation reserve |
2023 |
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2022 |
£ |
£ |
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At 1 April 2022 |
847,990 |
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718,390 |
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Gain on revaluation of land and buildings |
51,393 |
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160,000 |
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Deferred taxation arising on the revaluation of land and buildings |
7,279 |
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(30,400) |
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At 31 March 2023 |
906,662 |
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847,990 |
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11 |
Other financial commitments |
2023 |
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2022 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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7,217 |
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15,882 |
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12 |
Related party transactions |
2023 |
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2022 |
£ |
£ |
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Key Management Personnel |
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Personal guarantees have been given in respect of monies owed to Coors. |
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Amount due to Coors |
30,770 |
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28,610 |
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13 |
Other information |
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TTG Inns Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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Portland House |
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21 Narborough Rad |
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Cosby |
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Leicester |
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LE9 1TA |