Company registration number 12157098 (England and Wales)
RED LION OPERATIONS 1 LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
RED LION OPERATIONS 1 LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
RED LION OPERATIONS 1 LIMITED
BALANCE SHEET
AS AT
25 DECEMBER 2022
25 December 2022
- 1 -
25 December 2022
26 December 2021
Notes
£
£
£
£
Current assets
Debtors
4
74,311
101
Cash at bank and in hand
9,184
49
83,495
150
Creditors: amounts falling due within one year
5
(89,371)
(150)
Net current liabilities
(5,876)
-
0
Capital and reserves
Called up share capital
6
-
0
-
0
Profit and loss reserves
(5,876)
-
0
Total equity
(5,876)
-
0

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.

The financial statements were approved by the board of directors and authorised for issue on 16 February 2024 and are signed on its behalf by:
Mr David Ramsey
Director
Company registration number 12157098 (England and Wales)
RED LION OPERATIONS 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 2 -
1
Accounting policies
Company information

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.

1.1
Reporting period

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.

1.2
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.

1.3
Going concern

The Company has net current liabilities of £5,876 (2021: £Nil) and current assets of £83,495 (2021:true £150).

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.

1.4
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.

RED LION OPERATIONS 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.5
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.

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.

1.6
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.

RED LION OPERATIONS 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 4 -
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
5,833
-
0
3
Employees

The Company have no employees other than the directors, who received no remuneration in the current or prior year.

4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
74,311
101
5
Creditors: amounts falling due within one year
2022
2021
£
£
Amounts owed to group undertakings
83,538
150
Accruals and deferred income
5,833
-
0
89,371
150
6
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
1 share (2021: 1 share) of 1p each
1
1
-
0
-
1
1
-
0
-
0

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

RED LION OPERATIONS 1 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 25 DECEMBER 2022
- 5 -
7
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
8
Events after the reporting date

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.

9
Related party transactions

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

10
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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