Sunderland FC Development LLP
Annual Report and Financial Statements
For the year ended 31 December 2023
LLP Registration No. OC375782 (England and Wales)
Sunderland FC Development LLP
LLP Information
Designated members
J L Nabors (nee Feggett)
Secretary
J L Nabors (nee Feggett)
LLP number
OC375782
Registered office
Hilton Garden Inn Sunderland
Vaux Brewery Way
Sunderland
United Kingdom
SR5 1SU
Auditors
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Sunderland FC Development LLP
Contents
Page
Members' report
1 - 2
Independent auditor's report
3 - 7
Consolidated statement of comprehensive income
8
Consolidated balance sheet
9
LLP balance sheet
10
Consolidated reconciliation of members' interests
11 - 12
LLP reconciliation of members' interests
13 - 14
Group statement of cash flows
15
Notes to the financial statements
16 - 26
Sunderland FC Development LLP
Member's Report
For the year ended 31 December 2023
Page 1
The members present their annual report and financial statements for the period ended 31 December 2023.
Principal activities

The principal activity of Sunderland FC Development LLP ("the LLP") is that of property development. The group activity is the operation of a hotel, restaurant and bar. The results for the year are set out on below.

Review of business

The members are satisfied with the progress of the business.

Going concern

Forecasts for 2024 and beyond are prepared on year-to-date actuals and appropriate assumptions on revenues and costs. At the date of signing these accounts, it is anticipated that the group will continue to show growth beyond 2023 levels of trading and assessments of going concern have been undertaken accordingly.

 

Funding has been provided by the ultimate parent company in previous years and current forecasts show that the LLP and group are self-funding. However additional funding lines are in place from the ultimate parent company to address any adverse scenarios that may occur for the foreseeable future. To this extent the members have ensured that funding lines are agreed and in place to manage and exceed cash requirements of the stress forecasting scenarios.

 

The business to date has not sought any external funding outside of the group and there are no realistic circumstances where it would envisage doing so. Therefore, there is a reasonable expectation that the LLP and group has adequate resources to continue in operational existence for the foreseeable future. The members are confident that the actions and strategies in place should be sufficient to mitigate business risks as they arise.

 

The LLP places significant reliance on the ultimate controlling party not recalling amounts owing to them and to provide further funds at times when required. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the ability of the LLP to continue as a going concern and therefore its ability to realise its assets and discharge its liabilities in the normal course of business.

 

The financial statements do not include any adjustments that would arise should the LLP be unable to continue as a going concern.

Designated member

The designated member who held office during the year and up to the date of signature of the financial statements was as follows:

Wear LLC
J L Feggett
Policy on members' drawings
The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.

A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".
Sunderland FC Development LLP
Member's Report (Continued)
For the year ended 31 December 2023
Page 2
Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

 

Statement of member's responsibilities

 

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

 

The members responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Statement of disclosures to auditors

 

Each of the members in office at the date of approval of this annual report confirms that:

 

 

 

On behalf of the members
J L Nabors (nee Feggett)
Designated Member
13 August 2024
Sunderland FC Development LLP
Independent Auditor's Report
To the Members of Sunderland FC Development LLP
Page 3
Opinion

We have audited the financial statements of Sunderland FC Development LLP (the 'parent LLP') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Group Statement of Comprehensive Income, the Group and parent LLP Balance Sheet, Group and parent LLP reconciliation of members' interests, the Group Statement of Cash Flows and notes to the financial statements, including 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 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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.

Material uncertainty relating to going concern

We draw attention to note 1.3 in the financial statements, which indicates that the LLP is reliant on the ongoing financial support of the ultimate controlling party to enable it to continue as a going concern. Whilst the members do not believe there is any reason this support will not be forthcoming, it cannot be guaranteed. As stated in note 1.3 these events or conditions, along with the other matters as set forth in note 1.3 indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

In auditing the financial statements, we have concluded that the member's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.

Sunderland FC Development LLP
Independent Auditor's Report (Continued)
To the Members of Sunderland FC Development LLP
Page 4

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. 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.

 

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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent LLP and its environment obtained in the course of the audit, we have not identified material misstatements in the Members' Report

 

We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members 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 members determine are 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 members are responsible for assessing the group's and parent LLP'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 members either intend to liquidate the group or the parent LLP or to cease operations, or has no realistic alternative but to do so.

Sunderland FC Development LLP
Independent Auditor's Report (Continued)
To the Members of Sunderland FC Development LLP
Page 5
Auditor's 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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Sunderland FC Development LLP
Independent Auditor's Report (Continued)
To the Members of Sunderland FC Development LLP
Page 6
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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 objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the limited liability partnership.

 

Our approach was as follows:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Sunderland FC Development LLP
Independent Auditor's Report (Continued)
To the Members of Sunderland FC Development LLP
Page 7

Use of our report

This report is made solely to the limited liability partnership’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 (as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). Our audit work has been undertaken for no purpose other than to draw to the attention of the limited liability partnership’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the company and the limited liability partnership’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Grieve (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
13 August 2024
Chartered Accountants
Statutory Auditor
6th Floor
9 Appold Street
London
EC2A 2AP
Sunderland FC Development LLP
Group Statement of Comprehensive Income
For the year ended 31 December 2023
Page 8
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
3,795,442
5,146,432
Cost of sales
(1,722,821)
(2,146,577)
Gross profit
2,072,621
2,999,855
Administrative expenses
(2,394,928)
(3,588,613)
Other operating income
-
27,918
Tax on loss
8
-
0
-
0
Loss for the financial year
(322,307)
(560,840)
Loss for the financial year is all attributable to the owners of the parent LLP.
Total comprehensive income for the year is all attributable to the owners of the parent LLP.
Sunderland FC Development LLP
Consolidated Balance Sheet
As at 31 December 2023
31 December 2023
Page 9
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
5,387,876
6,081,416
Current assets
Stocks
11
20,661
15,809
Debtors
12
110,709
75,003
Cash at bank and in hand
271,416
503,576
402,786
594,388
Creditors: amounts falling due within one year
13
(462,301)
(661,586)
Net current liabilities
(59,515)
(67,198)
Total assets less current liabilities
5,328,361
6,014,218
Creditors: amounts falling due after more than one year
14
(12,466,450)
(12,830,000)
Net liabilities attributable to members
(7,138,089)
(6,815,782)
Represented by:
Members' other interests
Other reserves classified as equity
(7,138,089)
(6,815,782)
(7,138,089)
(6,815,782)
Total members' interests
Members' other interests
(7,138,089)
(6,815,782)
(7,138,089)
(6,815,782)
The financial statements were approved by the members' and authorised for issue on
13 August 2024
13 August 2024
and are signed on its behalf by:
J L Nabors (nee Feggett)
Designated Member
LLP Registration No. OC375782
Sunderland FC Development LLP
LLP Balance Sheet
As at 31 December 2023
31 December 2023
Page 10
2023
2022
Notes
£
£
£
£
Current assets
Cash at bank and in hand
5,412
5,445
Creditors: amounts falling due within one year
13
(47,713)
(43,313)
Net current liabilities
(42,301)
(37,868)
Represented by:
Members' other interests
Other reserves classified as equity
(42,301)
(37,868)
(42,301)
(37,868)
Total members' interests
Members' other interests
(42,301)
(37,868)
As permitted by s408 Companies Act 2006, the LLP has not presented its own profit and loss account and related notes. The company's loss for the year was £4,433 (2022: £3,868).
The financial statements were approved by the members and authorised for issue on 13 August 2024 and are signed on its behalf by:
J L Nabors (nee Feggett)
Designated Member
LLP Registration No. OC375782
Sunderland FC Development LLP
Consolidated Reconciliation of Members' Interests
For the year ended 31 December 2023
Page 11
Current financial year
EQUITY
DEBT
TOTAL
Other reserves
Other amounts
Total
Total
2023
£
£
£
£
Members' interests at 1 January 2023
(6,815,782)
-
-
(6,815,782)
Loss for the financial year available for discretionary division among members
(322,307)
-
-
(322,307)
Members' interests after loss for the year
(7,138,089)
-
-
(7,138,089)
Members' interests at 31 December 2023
(7,138,089)
-
-
(7,138,089)
Sunderland FC Development LLP
Consolidated Reconciliation of Members' Interests (Continued)
For the year ended 31 December 2023
Page 12
Prior financial year
EQUITY
DEBT
TOTAL
Other reserves
Other amounts
Total
Total
2022
£
£
£
£
Members' interests at 1 August 2021
(6,254,942)
-
-
(6,254,942)
Loss for the financial year available for discretionary division among members
(560,840)
-
-
(560,840)
Members' interests after loss for the year
(6,815,782)
-
-
(6,815,782)
Members' interests at 31 December 2022
(6,815,782)
-
0
-
0
(6,815,782)
Sunderland FC Development LLP
LLP Reconciliation of Members' Interests
For the year ended 31 December 2023
Page 13
Current financial year
EQUITY
DEBT
TOTAL
Other reserves
Other amounts
Total
Total
2023
£
£
£
£
Members' interests at 1 January 2023
(37,868)
-
-
(37,868)
Loss for the financial year available for discretionary division among members
(4,433)
-
-
(4,433)
Members' interests after loss for the year
(42,301)
-
-
(42,301)
Members' interests at 31 December 2023
(42,301)
-
-
(42,301)
Amounts due to members
-
-
Sunderland FC Development LLP
LLP Reconciliation of Members' Interests (Continued)
For the year ended 31 December 2023
Page 14
Prior financial year
EQUITY
DEBT
TOTAL
Other reserves
Other amounts
Total
Total
2022
£
£
£
£
Members' interests at 1 August 2021
(34,000)
-
-
(34,000)
Loss for the financial year available for discretionary division among members
(3,868)
-
-
(3,868)
Members' interests after loss for the year
(37,868)
-
-
(37,868)
Members' interests at 31 December 2022
(37,868)
-
-
(37,868)
Sunderland FC Development LLP
Group Statement of Cash Flows
For the year ended 31 December 2023
Page 15
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
150,810
1,041,621
Investing activities
Purchase of tangible fixed assets
(19,420)
(56,489)
Net cash used in investing activities
(19,420)
(56,489)
Financing activities
Repayment of borrowings
(363,550)
(750,000)
Payment of finance leases obligations
-
(8,074)
Net cash used in financing activities
(363,550)
(758,074)
Net (decrease)/increase in cash and cash equivalents
(232,160)
227,058
Cash and cash equivalents at beginning of year
503,576
276,518
Cash and cash equivalents at end of year
271,416
503,576
Sunderland FC Development LLP
Notes to the Financial Statements
For the year ended 31 December 2023
Page 16
1
Accounting policies
Limited liability partnership information

Sunderland FC Development LLP is a limited liability partnership incorporated in England and Wales. The registered office is Hilton Garden Inn Sunderland, Vaux Brewery Way, Sunderland, England, SR5 1SU.

 

The limited liability partnership's principal activities are disclosed in the Member's Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together 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.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

Parent LLP disclosure exemptions

 

In preparing the separate financial statements of the parent LLP, advantage has been taken of the following disclosure exemptions available in FRS 102:

 

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent LLP, Sunderland FC Development LLP, together with all entities controlled by the parent LLP (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 17
1.3
Going concern

The members believes that preparing the financial statements on the going concern basis is appropriate due to the continued support of the ultimate controlling party, Wear LLC.

 

Management and the members have assessed the group and limited liability partnership's ability to be able to continue as a going concern for a period of 1 year from the date that these financial statements were authorised and it is in their opinion that the ultimate controlling party will continue to support the limited liability partnership. A letter of support has been obtained confirming that support will continue to be provided, and amounts owing to the ultimate controlling party will not be recalled for a period of at least a year from the date of approval of the financial statements, however that letter is not legally binding. Considering this, the going concern basis of preparation is deemed appropriate.

 

However, the entity places significant reliance on the ultimate controlling party not recalling amounts owing to them which is not guaranteed. These conditions indicate the existence of a material uncertainty which may cast significant doubt about the ability of the company to continue as a going concern and therefore its ability to realise it assets and discharge its liabilities in the normal.

 

The financial statements do not include any adjustments that would arise should the company be unable to continue as a going concern.

1.4
Reporting period

The financial statements of the LLP have been prepared for the year to 31 December 2023. The comparative amounts presented in these financial statements are for the 17 month period to 31 December 2022.

1.5
Turnover

Turnover represents income from the letting of hotel rooms and related services and goods. Income is recognised once the obligations under the bookings are satisfied. Income received in advance of the obligations being satisfied is deferred.

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.

1.6
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:

Leasehold land and buildings
25 years on a straight line basis
Fixtures and fittings
2 - 10 years on a straight line basis

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 recognised in the profit and loss account.

Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 18
1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent LLP financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

1.9
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.

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.

1.10
Financial instruments

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans and other debtors 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.

 

Creditors

Short term trade creditors and other current creditors payable on demand 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.

Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 19
1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

 

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 in the countries where the LLP and the group operate and generate income.

 

The taxation payable on the partnerships profits is solely the personal liability of the individual members consequently neither partnership taxation nor related deferred taxation arising in respect of the partnership are accounted for in these financial statements.

1.13
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.

1.14
Retirement benefits

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

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 20
1.16

Member's participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

 

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

 

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

 

Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 21
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

In preparing the financial statements the members have made the following judgements:

 

Tangible fixed assets

 

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where

appropriate. The actual lives of the assets and the residual values are assessed annually and may vary

depending on a number of factors. In re-assessing asset lives, factors such as technological innovation,

product life cycles and maintenance programmes are taken into account.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Accomodation, food and drink
3,795,442
5,146,432

All turnover arose within the United Kingdom.

4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging:
Depreciation of owned tangible fixed assets
712,960
1,356,542
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
26,000
40,266
Audit of the financial statements of the company's subsidiaries
4,400
-
30,400
40,266
Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 22
6
Employees

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

Group
LLP
2023
2022
2023
2022
Number
Number
Number
Number
Direct Labour
60
63
-
-
Administration
5
5
-
-
Sales
2
2
-
-
Total
67
70
-
0
-
0

Their aggregate remuneration comprised:

Group
LLP
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,271,328
1,583,941
-
-
Social security costs
89,093
116,490
-
-
Pension costs
17,044
22,852
-
-
1,377,465
1,723,283
-
-
7
Members' profit share

Profits are shared among members each year in accordance with agreed profit sharing arrangements disclosed in the members agreement.

 

The profit share attributable to the members with the largest entitlement to profit was £nil (2022: £nil).

 

 

 

 

 

 

 

 

 

Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 23
8
Taxation

The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(322,307)
(560,840)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(75,807)
(106,560)
Tax effect of expenses that are not deductible in determining taxable profit
5,321
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(27,377)
Change in unrecognised deferred tax assets
1,043
937
Depreciation on assets not qualifying for tax allowances
69,569
-
0
Other permanent differences
-
0
133,000
Movement in provisions
(126)
-
0
Taxation charge
-
-

The group has estimated unrecognised deferred tax assets in respect of timing differences of £541,000 (2022: £448,000).

9
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
6,168,085
8,006,111
14,174,196
Additions
-
0
19,420
19,420
At 31 December 2023
6,168,085
8,025,531
14,193,616
Depreciation and impairment
At 1 January 2023
1,759,632
6,333,148
8,092,780
Depreciation charged in the year
246,723
466,237
712,960
At 31 December 2023
2,006,355
6,799,385
8,805,740
Carrying amount
At 31 December 2023
4,161,730
1,226,146
5,387,876
At 31 December 2022
4,408,453
1,672,963
6,081,416
The LLP had no tangible fixed assets at 31 December 2023 or 31 December 2022.
Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 24
10
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of shares held
% Held
Direct
Sunderland FC Hotels Limited
England and Wales
Hotel operator
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Sunderland FC Hotels Limited
7,095,788
(317,874)

The registered address for the above subsidiary is Hilton Garden Inn Sunderland, Vaux Brewery Way, Sunderland, SR5 1SU.

11
Stocks
Group
LLP
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
20,661
15,809
-
-
12
Debtors
Group
LLP
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
68,175
22,185
-
-
Other debtors
16,031
2,878
-
-
Prepayments and accrued income
26,503
49,940
-
-
110,709
75,003
-
-
Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 25
13
Creditors: amounts falling due within one year
Group
LLP
2023
2022
2023
2022
£
£
£
£
Trade creditors
92,993
164,802
-
-
Amounts owed to group undertakings
34,413
34,413
43,313
40,013
Other taxation and social security
74,026
85,595
-
-
Other creditors
7,498
33,985
-
-
Accruals and deferred income
253,371
342,791
4,400
3,300
462,301
661,586
47,713
43,313
14
Creditors: amounts falling due after more than one year
Group
LLP
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
12,466,450
12,830,000
-
-

Amounts owed to related undertakings include unsecured, interest free loans repayable to Wear LLC, the immediate parent undertaking of Sunderland FC Development LLP.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
17,044
22,852

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

16
Related party transactions

The company has taken advantage of the exemption from disclosing transactions with members within a

wholly owned group.

17
Controlling party

The immediate controlling party is Wear LLC by virtue of their voting rights within the partnership. The members consider the ultimate controlling party of the partnership to be Mr E Short.

Sunderland FC Development LLP
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 26
18
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
503,576
(232,160)
271,416
Borrowings excluding overdrafts
(12,830,000)
363,550
(12,466,450)
(12,326,424)
131,390
(12,195,034)
19
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(322,307)
(560,840)
Adjustments for:
Depreciation and impairment of tangible fixed assets
712,960
1,356,542
Movements in working capital:
Increase in stocks
(4,852)
(3,371)
Increase in debtors
(35,706)
(1,372)
(Decrease)/increase in creditors
(199,285)
250,662
Cash generated from operations
150,810
1,041,621
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