Company registration number 05124400 (England and Wales)
RED MIST LEISURE LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
RED MIST LEISURE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
RED MIST LEISURE LIMITED
BALANCE SHEET
AS AT
25 DECEMBER 2022
25 December 2022
- 1 -
25 December 2022
26 December 2021
Notes
£
£
£
£
Fixed assets
Intangible assets
4
101,311
129,186
Tangible assets
5
11,975,998
17,349,069
12,077,309
17,478,255
Current assets
Stocks
132,925
179,700
Debtors
6
10,991,279
2,734,887
Cash at bank and in hand
275,884
296,408
11,400,088
3,210,995
Creditors: amounts falling due within one year
7
(21,072,572)
(15,001,992)
Net current liabilities
(9,672,484)
(11,790,997)
Total assets less current liabilities
2,404,825
5,687,258
Creditors: amounts falling due after more than one year
8
-
0
(162,200)
Provisions for liabilities
(1,735,339)
(1,785,454)
Net assets
669,486
3,739,604
Capital and reserves
Called up share capital
9
1,589
1,589
Share premium account
58,411
58,411
Revaluation reserve
3,734,763
3,948,411
Profit and loss reserves
(3,125,277)
(268,807)
Total equity
669,486
3,739,604

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.

RED MIST LEISURE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
25 DECEMBER 2022
25 December 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 4 March 2024 and are signed on its behalf by:
Mr David Ramsey
Director
Company registration number 05124400 (England and Wales)
RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 3 -
1
Accounting policies
Company information

Red Mist Leisure 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.

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.

1.2
Going concern

The Company has net assets of £true669,486 (2021: £3,739,604) and net current liabilities of £9,672,484 (2021: £11,790,997).

 

The directors have reviewed the future liquidity requirements and have considered the cash flow forecasts of the Company. The Company is party to a group structure and the group produces long-term financial forecasts which show the Company is able to operate and meet its financial obligations as they fall due as they have support from its holding company as and when required. Fellow group companies will also relinquish the right to call up intercompany loans owned by the Company when required. Based on this review and the future business prospects of the Company and its group the Directors believe the Company will be able to meet its liabilities as they fall due. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
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:

Freehold land and buildings
2% on buildings only to a residual value
Leasehold land and buildings
Straightline over the shorter of the useful economic life and the period of the lease
Fixtures and fittings
Rates vary between 10% straight line and 25% reducing balance basis
Computers
3 years straight line basis
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.

1.6
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
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.

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, 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.

1.10
Equity instruments

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.

1.11
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.

RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 7 -
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.

1.12
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.

 

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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

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.

1.15
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.

RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 8 -
2
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
(44,784)
43,077

In the current year there is an audit fee of £5,000. The balance of (44,784) arises from the reversal of 2021 over provision of audit fees.

3
Employees

The average monthly number of persons (including directors) employed by the company during the Period was:

2022
2021
Number
Number
Total
66
251
4
Intangible fixed assets
Goodwill
£
Cost
At 27 December 2021 and 25 December 2022
495,000
Amortisation and impairment
At 27 December 2021
365,814
Amortisation charged for the Period
27,875
At 25 December 2022
393,689
Carrying amount
At 25 December 2022
101,311
At 26 December 2021
129,186
RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 9 -
5
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Fixtures and fittings
Computers
Equipment
Total
£
£
£
£
£
£
Cost
At 27 December 2021
13,812,255
2,327,659
3,436,443
40,758
1,684,305
21,301,420
Additions
41,810
4,200
18,480
16,133
81,696
162,319
Disposals
(3,830,733)
(204,486)
(874,106)
-
0
(416,250)
(5,325,575)
Revaluation
(263,763)
-
0
-
0
-
0
-
0
(263,763)
Transfers
(11,330)
11,330
-
0
-
0
-
0
-
0
At 25 December 2022
9,748,239
2,138,703
2,580,817
56,891
1,349,751
15,874,401
Depreciation and impairment
At 27 December 2021
82
717,689
2,062,584
6,891
1,165,105
3,952,351
Depreciation charged in the Period
106,921
119,701
73,802
18,166
540,397
858,987
Eliminated in respect of disposals
(98,918)
(24,179)
(500,860)
-
0
(288,978)
(912,935)
At 25 December 2022
8,085
813,211
1,635,526
25,057
1,416,524
3,898,403
Carrying amount
At 25 December 2022
9,740,154
1,325,492
945,291
31,834
(66,773)
11,975,998
At 26 December 2021
13,812,173
1,609,970
1,373,859
33,867
519,200
17,349,069

The freehold properties have been valued as at 31 December 2022 by an independent company, Coldwell Banker Richard Ellis (CBRE) at £9,575,000, and incorporated into the financial statements at £9,740,154 to allow for the value of assets held as freehold properties not included within the valuation.

6
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
62,331
25,306
Corporation tax recoverable
41,749
41,749
Amounts owed by group undertakings
10,699,356
2,484,153
Other debtors
32,244
46,328
Prepayments and accrued income
155,599
137,351
10,991,279
2,734,887
RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 10 -
7
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
-
0
126,703
Trade creditors
228,747
864,075
Amounts owed to group undertakings
17,612,193
11,875,191
Taxation and social security
344,252
400,435
Wages and salaries
268,734
332,532
Deferred income
70,561
195,249
Other creditors
128,021
29,875
Accruals and deferred income
2,441,678
1,136,086
21,094,186
14,960,146
8
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Other borrowings
-
0
162,200
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
648 Ordinary A shares (2021: 648) of £1 each
648
648
648
648
582 Ordinary B shares (2021: 582) of £1 each
582
582
582
582
199 Ordinary C shares (2021: 199) of £1 each
199
199
199
199
80 Ordinary D shares (2021: 80) of £1 each
80
80
80
80
80 Ordinary E shares (2021: 80) of £1 each
80
80
80
80
1,589
1,589
1,589
1,589

The ordinary share is allotted, called up and fully paid.

RED MIST LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 11 -
10
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:
Marc Waterman
Statutory Auditor:
UHY Hacker Young
11
Pension Commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £42,078 (2021: £60,992). Contributions totalling £21,614 (2021: £20,120) were payable to the fund at the reporting date and are included in creditors.

12
Events after the reporting date

On 29 December 2022, the Company sold the Stag on The River in Eashing to Red Lion Operations 1 Limited, a fellow subsidiary of the group, for consideration of £3.4m satisfied by an intercompany debt of the same amount. On the same day, the Company directed that monies receivable from Red Lion Operations 1 Limited of £3.4m should be directed to Red Mist Holdings Limited in order to satisfy existing debt.

13
Related party transactions

The Company has taken advantage of the exemption available under FRS 102 not to disclose transactions with wholly owned group members.

14
Parent company

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.

2022-12-252021-12-27false04 March 2024CCH SoftwareCCH Accounts Production 2023.300No description of principal activityThis audit opinion is unqualifiedMr  Jason MyersMr David RamseyMr  Mark RobsonMr  Mark  Williamsfalse051244002021-12-272022-12-25051244002022-12-25051244002021-12-2605124400core:NetGoodwill2022-12-2505124400core:NetGoodwill2021-12-2605124400core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-2505124400core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-2505124400core:FurnitureFittings2022-12-2505124400core:ComputerEquipment2022-12-2505124400core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-12-2505124400core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-2605124400core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-2605124400core:FurnitureFittings2021-12-2605124400core:ComputerEquipment2021-12-2605124400core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-12-2605124400core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-2505124400core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-2605124400core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-2505124400core:Non-currentFinancialInstrumentscore:AfterOneYear2021-12-2605124400core:CurrentFinancialInstruments2022-12-2505124400core:CurrentFinancialInstruments2021-12-2605124400core:ShareCapital2022-12-2505124400core:ShareCapital2021-12-2605124400core:SharePremium2022-12-2505124400core:SharePremium2021-12-2605124400core:RevaluationReserve2022-12-2505124400core:RevaluationReserve2021-12-2605124400core:RetainedEarningsAccumulatedLosses2022-12-2505124400core:RetainedEarningsAccumulatedLosses2021-12-2605124400core:ShareCapitalOrdinaryShares2022-12-2505124400core:ShareCapitalOrdinaryShares2021-12-2605124400bus:Director22021-12-272022-12-2505124400core:Goodwill2021-12-272022-12-2505124400core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-272022-12-2505124400core:LandBuildingscore:LongLeaseholdAssets2021-12-272022-12-2505124400core:FurnitureFittings2021-12-272022-12-2505124400core:ComputerEquipment2021-12-272022-12-2505124400core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-12-272022-12-25051244002020-12-282021-12-2605124400core:NetGoodwill2021-12-2605124400core:NetGoodwill2021-12-272022-12-2505124400core:LandBuildingscore:OwnedOrFreeholdAssets2021-12-2605124400core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-2605124400core:FurnitureFittings2021-12-2605124400core:ComputerEquipment2021-12-2605124400core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2021-12-26051244002021-12-2605124400core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-12-272022-12-2505124400core:Non-currentFinancialInstruments2022-12-2505124400core:Non-currentFinancialInstruments2021-12-2605124400bus:PrivateLimitedCompanyLtd2021-12-272022-12-2505124400bus:SmallCompaniesRegimeForAccounts2021-12-272022-12-2505124400bus:FRS1022021-12-272022-12-2505124400bus:Audited2021-12-272022-12-2505124400bus:Director12021-12-272022-12-2505124400bus:Director32021-12-272022-12-2505124400bus:Director42021-12-272022-12-2505124400bus:FullAccounts2021-12-272022-12-25xbrli:purexbrli:sharesiso4217:GBP