Registration number:
The Basingstoke Golf Club Limited
(A company limited by guarantee)
for the Year Ended 31 December 2023
The Basingstoke Golf Club Limited
Contents
Company Information |
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Independent Auditor's Report |
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Balance Sheet |
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Notes to the Financial Statements |
The Basingstoke Golf Club Limited
Company Information
Directors |
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Registered office |
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Solicitors |
Lamb Brooks LLP |
Auditors |
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The Basingstoke Golf Club Limited
Independent Auditor's Report to the Members of The Basingstoke Golf Club Limited
Opinion
We have audited the financial statements of The Basingstoke Golf Club Limited (the 'company') for the year ended 31 December 2023, which comprise the Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
The Basingstoke Golf Club Limited
Independent Auditor's Report to the Members of The Basingstoke Golf Club Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the .
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit; or |
• | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities (set out on page 3), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The extent to which the audit was considered capable of detecting irregularities, including fraud is detailed below:
The Basingstoke Golf Club Limited
Independent Auditor's Report to the Members of The Basingstoke Golf Club Limited
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the golf club sector;
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and health and safety legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting underlying supporting documentation; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;
• investigated the rationale behind significant or unusual transactions; and
• reviewed the procurement process for significant contracts relating to replacement land and buildings.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to actual and potential financial claims; and
• reviewing correspondence with HMRC and relevant regulators including the Health and Safety Executive.
The Basingstoke Golf Club Limited
Independent Auditor's Report to the Members of The Basingstoke Golf Club Limited
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
Ground Floor South Suite
Afon House
Worthing Road
West Sussex
RH12 1TL
The Basingstoke Golf Club Limited
(Registration number: 00938680)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Reserves |
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Members' funds |
44,630,263 |
46,184,092 |
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Surplus |
44,630,263 |
46,184,092 |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
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The Basingstoke Golf Club Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a company limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. In the event that the company is wound up, every member and those who have been members in the last year are liable to pay a sum not exceeding £2.
The address of its registered office is:
England
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Consolidated financial statements
The company is part of a small group. The company has taken advantage of the exemption provided under Section 399 of the Companies Act 2006 and has not prepared group accounts.
Going concern
The financial statements have been prepared on a going concern basis as the company holds significant cash balances in excess of its liabilities and planned capital expenditure.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
The Club's subscription year ends on 31 March. A proportion of each year's subscriptions and locker fees are therefore carried forward at 31 December. Full credit is taken for entrance fees as they are received.
The Basingstoke Golf Club Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Government grants
Grants are accounted for under the accruals method. Grants of a revenue nature are recognised in "other income" within the profit and loss account in the same period as the related expenditure.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than assets under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
10 - 20% straight line |
Office equipment |
20 - 33.33% straight line |
Fixtures & fittings |
10 - 20% straight line |
Fixed asset investment in subsidiary
The company's investment in its wholly owned subsidiary company is recognised at cost less an impairment provision.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
The Basingstoke Golf Club Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Pension obligations
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. Differences between contributions payable in the year and those actually paid are shown as either accruals or prepayments in the balance sheet.
Financial instruments
Classification
The Basingstoke Golf Club Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Taxation |
2023 |
2022 |
|
UK corporation tax |
62,143 |
8,000 |
UK corporation tax adjustment to prior periods |
(1,370,147) |
- |
(1,308,004) |
8,000 |
The company is not liable to corporation tax on any profits arising from mutual trading with members, only on profits from trading with non-members and from other income and capital gains.
In the year ended 31 December 2021, the company disposed of its freehold land and realised a capital gain which is subject to corporation tax. The capital gain has been calculated and this involves a consideration of the base cost of the freehold land, both its market value at March 1982 and subsequent enhancement expenditure, and the costs of disposing of the freehold land. The company has made a provisional rollover relief claim for the reinvestment of part of the proceeds of sale into replacement freehold land and buildings.
The company made a payment on account of the corporation tax liability on the capital gain from the sale of the freehold land of £8 million. Based on the provisional rollover relief claim, the company calculates it is entitled to a refund of part of the corporation tax paid of £1,362,147 which is reflected in the Profit and Loss Account. At the balance sheet date, of this corporation tax refund, £396,953 has been received and £973,194 has been claimed from HM Revenue and Customs, which has been received after the balance sheet date.
Once the reinvestment is complete, the company will make a final rollover relief claim in respect of the expenditure on the replacement freehold land and buildings.
Staff numbers |
The average number of persons employed by the company during the year was
The Basingstoke Golf Club Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Assets under construction |
Other tangible assets |
Total |
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Cost |
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At 1 January 2023 |
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Additions |
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At 31 December 2023 |
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Depreciation |
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At 1 January 2023 |
- |
|
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Charge for the year |
- |
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At 31 December 2023 |
- |
|
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Carrying amount |
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At 31 December 2023 |
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|
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At 31 December 2022 |
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|
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Asset in the course of construction
Within assets in the course of contruction is a new clubhouse facility including a driving range. Integral to the driving range is the import of inert landfill to re-profile the grounds in order to bring the asset into its intended operating condition. Receipts of £65,000 have been credited against the costs of the driving range.
The Basingstoke Golf Club Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Investments |
2023 |
2022 |
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Investments in subsidiaries |
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Subsidiaries |
£ |
Cost |
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At 1 January 2023 |
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Provision |
( |
Carrying amount |
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At 31 December 2023 |
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At 31 December 2022 |
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Provision has been made against the cost of the investment in the subsidiary company, Dummer Golf Limited. The provision is the difference between the cost of acquisition and the loans made to the subsidiary company and the book value of the land and buildings of £1,854,802 owned by the subsidiary company transferred to the company on 17 January 2024.
In addition, provision of £208,574 has been made against loans made to the subsidiary company included within debtors. The total provision expensed to the Profit and Loss Account is £3,158,539.
Details of undertakings
Details of the subsidiary company are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
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Subsidiary undertakings |
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Down Street
England and Wales |
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Subsidiary undertakings |
Dummer Golf Limited The principal activity of Dummer Golf Limited is |
The Basingstoke Golf Club Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Stocks |
2023 |
2022 |
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Other inventories |
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Debtors |
Current |
Note |
2023 |
2022 |
Trade debtors |
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Amounts owed by related parties |
- |
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Prepayments |
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Corporation tax recoverable |
973,194 |
- |
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Other debtors |
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Other debtors includes the balance due on the sale of land of £12,666,666 which is due within one year.
Creditors |
Creditors: amounts falling due within one year
2023 |
2022 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2023 |
2022 |
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Due after one year |
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Loans and borrowings |
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The Basingstoke Golf Club Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Loans and borrowings |
2023 |
2022 |
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Non-current loans and borrowings |
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Secured debentures |
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Other creditors due after more than one year consists of 2 Mark "A" Debentures of £200 each, carrying interest at 4% p.a. and not redeemable except at the option of the company on the death of the holder.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Related party transactions |
The company has taken advantage of the exemption available under FRS 102 "Related Party Disclosures" Paragraph 33.1A and has not disclosed transactions entered into between the company and its subsidiary company.
Company limited by guarantee |
The company is limited by guarantee and consequently does not have share capital. In the event that the company is wound up, every member and those who have been members in the last year are liable to pay a sum not exceeding £2.
Subsequent events |
On 4 January 2024, the company was subject to a bank fraud. The company is presently seeking recovery of the funds fraudulently transferred from the company's bank account. The directors consider it premature to estimate the financial effect of this bank fraud.
The company operates from the land and buildings owned by its subsidiary company Dummer Golf Limited. The land and buildings were transferred from the ownership of the subsidiary company to the ownership of the company on 17 January 2024 at their original cost of £1,854,802.