Red Lion Operations 1 Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Wool Barn, Peper Harow, Godalming, Surrey, GU8 6BQ.
FRS 102 3.10 An entity shall present a complete set of financial statements (including comparative information as set out in paragraph 3.14) at least annually. When the end of an entity’s reporting period changes and the annual financial statements are presented for a period longer or shorter than one year, the entity shall disclose the following: (a) that fact; (b) the reason for using a longer or shorter period; and (c) the fact that comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
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 £.
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.
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, including creditors, bank loans, loans from fellow 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 payments 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.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
The Company have no employees other than the directors, who received no remuneration in the current or prior year.
The ordinary share is allotted, called up and fully paid.
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.
On 29 December 2022, Red Mist Leisure Limited ("RML"), a fellow subsidiary of the group, sold the Stag on The River in Eashing to the Company, for consideration of £3.4m which was satisfied by an intercompany debt of the same amount.
On the same day, the Company entered into a loan of £2.04m, bearing interest at 12% per annum, with KH V Lending 302 Limited. KH V Lending 302 Limited is a company whose ultimate parent entity is Kitty Hawk Capital Partners V LP, a limited partnership registered in Jersey, and which has a controlling interest in Red Lion Holdings LLP, the controlling party of the Company, In addition an interest-free loan of £1.36m was obtained from Red Lion Properties 1 Limited, the immediate parent undertaking of the Company.
The proceeds from these loans was directed by the Company to RML to satisfy the intercompany debt arising from the acquisition of the business.
On 29 December 2022 the group entered into further funding arrangements under which the company became party to a fixed and floating charge over its assets in respect of group borrowings.
The Company has taken advantage of the exemption available under FRS 102 not to disclose transactions with wholly owned group members.
The Company's immediate and ultimate parent entity is Red Lion Holdings LLP, a limited liability partnership incorporated in England and Wales. The registered office address of Red Lion Holdings LLP is The Wool Barn, Peper Harow, Godalming, Surrey, GU8 6BQ. The smallest and largest group of which the Company is a member and for which group accounts are prepared is Red Lion Holdings LLP. Copies of these are available from Companies House.
It is the opinion of the directors that there is no single controlling party of the Company.