Company registration number 11236436 (England and Wales)
GROSVENOR PUBS TRADING LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
GROSVENOR PUBS TRADING LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 12
GROSVENOR PUBS TRADING LIMITED
BALANCE SHEET
AS AT
25 DECEMBER 2022
25 December 2022
- 1 -
25 December 2022
26 December 2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
5,196,184
7,449,857
Current assets
Stocks
43,155
25,903
Debtors
5
4,449,751
3,563,262
Cash at bank and in hand
203,265
184,836
4,696,171
3,774,001
Creditors: amounts falling due within one year
6
(10,876,420)
(8,020,938)
Net current liabilities
(6,180,249)
(4,246,937)
Total assets less current liabilities
(984,065)
3,202,920
Creditors: amounts falling due after more than one year
7
(1,193,665)
(1,202,538)
Provisions for liabilities
(301,626)
Net (liabilities)/assets
(2,177,730)
1,698,756
Capital and reserves
Called up share capital
9
1
1
Revaluation reserve
904,878
Profit and loss reserves
(2,177,731)
793,877
Total equity
(2,177,730)
1,698,756
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.
GROSVENOR PUBS TRADING 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 2 March 2024 and are signed on its behalf by:
Mr David Ramsey
Director
Company registration number 11236436 (England and Wales)
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
Grosvenor Pubs Trading 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 liabilities of £2,177,730 (2021: £1,698,756 net assets) and net current liabilities of £6,180,249 (2021: £4,246,937).true
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.
GROSVENOR PUBS TRADING 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
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
10% straight-line
Fixtures and fittings
20% straight-line
Computers
33% straight-line
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 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.
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.
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.6
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.
1.7
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.
1.8
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.
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.
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
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.
1.9
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 7 -
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
24,733
(37,850)
3
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2022
2021
Number
Number
Total
79
62
4
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 27 December 2021
6,926,413
857,515
94,512
7,878,440
Additions
32,746
1,515
34,261
Impairment
(255,587)
(40,363)
(295,950)
Revaluation
(658,540)
(658,540)
At 25 December 2022
6,045,032
818,667
94,512
6,958,211
Depreciation and impairment
At 27 December 2021
205,765
178,165
44,653
428,583
Depreciation charged in the Period
600,510
156,296
28,675
785,481
Revaluation
547,963
547,963
At 25 December 2022
1,354,238
334,461
73,328
1,762,027
Carrying amount
At 25 December 2022
4,690,794
484,206
21,184
5,196,184
At 26 December 2021
6,720,648
679,350
49,859
7,449,857
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
4
Tangible fixed assets
(Continued)
- 8 -
The freehold properties have been valued as fully equipped operational sites on the basis of their trading potential as at 31 December 2022 by an independent company, Coldwell Banker Richard Ellis (CBRE) at £5,175,000, and incorporated into the financial statements at £4,690,794 to allow for the value of assets held as fixtures, fittings and equipment included within the valuation.
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
3,001
3,001
Amounts owed by group undertakings
4,357,584
3,392,428
Deposits
5,000
-
VAT
12,195
Other debtors
19,944
7,197
Prepayments and accrued income
69,222
135,206
4,454,751
3,550,027
6
Creditors: amounts falling due within one year
2022
2021
£
£
Bank loans
9,366
9,366
Other borrowings
3,737,053
3,244,426
Trade creditors
45,681
216,153
Amounts owed to group undertakings
5,880,072
3,960,679
Deposits
4,259
6,230
Other taxation and social security
92,421
25,816
Wages and salaries
115,249
114,646
Other creditors
-
22,704
Accruals and deferred income
949,272
376,151
10,833,373
7,976,170
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 9 -
7
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
29,986
38,859
Other borrowings
1,163,679
1,163,679
1,193,665
1,202,538
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 10 -
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Revalued tangible fixed assets
-
301,626
2022
Movements in the Period:
£
Liability at 27 December 2021
301,626
Credit to other comprehensive income
(301,626)
Liability at 25 December 2022
-
9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
1 share (2021: 1 share) of £1 each
1
1
1
1
The ordinary share is allocated, called up and fully paid.
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
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 11 -
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 £12,193 (2021: £12,372). Contributions totalling £15 (2021: £54) were payable to the fund at the reporting date and are included in creditors.
GROSVENOR PUBS TRADING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 12 -
12
Related party transactions
KH V Lending 302 Limited is a company who's 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 smallest and largest undertaking which produces consolidated accounts that include the Company.
At the balance sheet date amounts borrowed under the agreed loan facility totalled £2,975,000 (2021: £3,244,426). Amounts lent under the agreement accrue interest at 10% per annum. Total interest recognised in the year totals £287,780 (2021: £269,456).
The Company has taken advantage of the exemption available under FRS 102 not to disclose transactions with wholly owned group members.
13
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.
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