Company Registration Number 10598631
|
SEDBERGH HOTEL ENTERPRISES LIMITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SEDBERGH HOTEL ENTERPRISES LIMITED
REGISTERED NUMBER: 10598631
BALANCE SHEET
AS AT 30 JUNE 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Creditors: amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 12 form part of these financial statements.
Page 1
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
Sedbergh Hotel Enterprises Limited is a private company limited by shares incorporated in the United Kingdom, the company registration number is 10598631. The registered office address is The Black Bull Hotel, 44 Main Street, Sedbergh, LA10 5BL.
The financial statements have been presented in pound sterling.
2.Accounting policies
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The directors have prepared forecasts through to June 2025 and have carefully considered the company’s ability to operate as a going concern. The company has continued to make losses in the current year as it has done in prior years however the directors are confident that measures put in place during the year and post year end will bring the company to a profitable position and allow the company to generate cash.
Based on the current cash balance at the date of signing the financial statements and the future forecasts, the company has the cash available to continue to operate for a period of at least 12 months. However, when the forecasts are stressed tested in various scenarios this identifies not unrealistic situations where there could be a cash shortfall. To mitigate the risk in these scenarios the directors have also put into place contingency plans to generate the cash required if performance is not in line with the forecasts and to meet any shortfall.
These plans include the sale of non-essential assets which are not currently being used to generate revenue, where buyers could be found easily for such assets. This along with options to take repayment holidays on loans and the formal confirmation from a director that no repayments on their loan account will be required; give the directors the reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
Page 2
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
|
|
Operating leases: the Company as lessee
|
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
|
|
Leased assets: the Company as lessee
|
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Page 3
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 4
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is 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.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
|
The average monthly number of employees, including directors, during the year was 31 (2022 - 34).
|
Page 5
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge for the year on owned assets
|
|
|
|
|
|
|
|
|
Charge for the year on financed assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Net Book Value of the assets currently held under hire purchase is £17,881 (2022: £23,841).
|
Page 6
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 7
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payments received on account
|
|
|
|
|
|
|
|
|
|
|
|
Other taxation and social security
|
|
|
|
Obligations under finance lease and hire purchase contracts
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
The following liabilities were secured:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
Details of security provided:
|
The Loan Notes are secured by a Fixed Charge on the property and a Floating Charge over all other assets of the Company.
The A & B Loan Notes accrue interest at the higher of Bank of England Base Rate plus 1% and 6% per annum. Interest of £179,601 was accrued during the current year of which £nil was paid.
C Loan Notes were issued in April 2020, these Loan Notes accrue interest at a rate of the higher of Bank of England Base Rate plus 2% and 3% per annum. Interest for the period up to 30 April 2023 of £6,736 was paid during the year with interest of £1,801 in respect of May and June 2023 accrued but not paid.
There are no fixed repayment dates for the Capital attached to the A & B Notes, no repayments can be made until the C Notes have been repaid. The company must make repayments out of after-tax profit each year (after retaining £50,000) but if there are no retained profits there is no repayment due.
The Bank Loan relates to a Bounceback Loan backed by the UK Government to assist businesses to continue trading once Coronavirus restrictions were lifted. The Bounceback Loan accrues interest at a rate of 2.5% per annum with the full amount of interest due during the year being paid.
Page 8
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following liabilities were secured:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net obligations under finance leases and hire purchase contracts
|
|
|
|
|
|
|
|
|
|
|
|
Details of security provided:
|
The Loan Notes are secured by a Fixed Charge on the property and a Floating Charge over all other assets of the Company.
The A & B Loan Notes accrue interest at the higher of Bank of England Base Rate plus 1% and 6% per annum. Interest of £179,601 was accrued during the current year of which £nil was paid.
C Loan Notes were issued in April 2020, these Loan Notes accrue interest at a rate of the higher of Bank of England Base Rate plus 2% and 3% per annum. Interest for the period up to 30 April 2023 of £6,736 was paid during the year with interest of £1,801 in respect of May and June 2023 accrued but not paid.
There are no fixed repayment dates for the Capital attached to the A & B Notes, no repayments can be made until the C Notes have been repaid. The company must make repayments out of after-tax profit each year (after retaining £50,000) but if there are no retained profits there is no repayment due.
The Bank Loan relates to a Bounceback Loan backed by the UK Government to assist businesses to continue trading once Coronavirus restrictions were lifted. The Bounceback Loan accrues interest at a rate of 2.5% per annum with the full amount of interest due during the year being paid.
Page 9
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
|
|
|
Analysis of the maturity of loans is given below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due 1-2 years
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due 2-5 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hire purchase and finance leases
|
|
Minimum lease payments under hire purchase fall due as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 10
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
87,500 (2022 - 87,500) Ordinary A Shares shares of £1.0 each
|
|
|
|
|
68,750 (2022 - 68,750) Ordinary B Shares shares of £1.0 each
|
|
|
|
|
87,500 (2022 - 75,000) Ordinary C Shares shares of £1.0 each
|
|
|
|
|
0 (2022 - 12,500) Ordinary Shares shares of £1.0 each
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The A Ordinary, B Ordinary and C Ordinary Shares rank pari passu in all respects but constitute separate classes of shares. On a show of hands, a holder of ordinary A, B and C shares has one vote for each ordinary A, B and C share.
The ordinary A, B and C shares, as respects dividends, participate equally in any distribution.
The ordinary A, B and C shares, as respects capital, participate equally in a distribution (including on a winding up). The Ordinary A, B and C shares are not redeemable.
The 12,500 Ordinary Deferred Shares were converted to Ordinary C Shares in the year.
|
The directors have performed a detailed reviewed the loan notes and the various revisions which have been made. As a result of this review the prior year loan note creditor balance, along with retained reserves brought forward have been adjusted. The effect on the prior year financial statements is as follows:
- Decrease loan note creditor falling due after more than one year by £200,962.
- Increase brought forward reserves by £200,962.
There has been no impact on the income statement in the previous year.
This adjustment has been made as, in the opinion of the directors, they are necessary to present a true and fair view of the company’s financial position.
The company operates a defined contribution pension scheme. The contributions to the scheme in the year were £11,293 (2022 - £11,421). Contributions totalling £2,038 (2022 - £2,503) were payable at the year end and included within creditors.
|
Related party transactions
|
|
During the year, a Director and his spouse were owed £23,345 (2022 - £10,877) by the Company. This amount is interest free and repayable on demand. The amount is included in other creditors.
|
Page 11
|
SEDBERGH HOTEL ENTERPRISES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
The auditors' report on the financial statements for the year ended 30 June 2023 was unqualified.
The audit report was signed on 4 March 2024 by Joanna Gray (Senior statutory auditor) on behalf of Armstrong Watson Audit Limited.
Page 12
|