REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
LODGE HOLDINGS (UK) LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
LODGE HOLDINGS (UK) LIMITED |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 5 |
Report of the Independent Auditors | 6 | to | 9 |
Income Statement | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 | to | 23 |
LODGE HOLDINGS (UK) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
BANKERS: |
1 Centenary Square |
Birmingham |
B1 1HQ |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The company is a holding company which carries an investment in rental properties. |
REVIEW OF BUSINESS |
For the whole of this year the company rented properties to third parties. These properties are mainly rented to The Lodge Tyre Company Limited and Halfords Autocentres Limited. |
During the year the company sold a building in Salford (having purchased an upgraded unit in Salford) and also Droitwich. The property in Droitwich was rented to a third party other than Halfords. |
Turnover of the Company has decreased by 51% (2023: 38% decrease) during the year. This was mainly driven by the company demerging from the trading group and only renting properties as its sole source of income. |
The company posted a pre-tax loss of £195,233 (2023 £2,230,756 profit). Again, this is due to the fact that the company is solely a renter of properties now. |
Operating profit margin has decreased to 34% (2023: 91%). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main risk to the company is the financial security of Halfords PLC as the main tenant is The Lodge Tyre Company Limited which is owned by the Halfords Group. We deem this to be low risk due to the fact that The Lodge Tyre Company Limited is a profitable part of the group and would be hived out or sold off by Halfords Group if there were issues in other group companies. |
SECTION 172(1) STATEMENT |
The business is managed on a day-to-day basis by Martyn Lodge. We have quarterly meetings to update shareholders on current position i.e. bank balance, property issues and potential further investment opportunities. |
We work closely with Lodge Tyre and Halfords to ensure the properties are maintained to high standards with latest safety standards a priority i.e. emergency lighting and fire alarm installations. |
CORPORATE AND SOCIAL RESPONSIBILITY |
We do support local charity events to ensure the business is giving back to the local community. |
FINANCIAL RISK MANAGEMENT |
Credit risk is addressed by carrying out regular checks of our customers with a reputable credit risk agency. We also constantly review processes to minimise exposure to cybercrime risk. |
OPERATING EXPENSES |
Operational expenses are monitored continually for each expense category and the shareholders are satisfied that the business continues to demonstrate strong cost control and caution in its decision making. |
WORKING CAPITAL |
The Company meets its day to day working capital requirements through cash receipts from rentals. These are closely monitored to ensure adherence to agreed credit terms. We do hold reserves in savings to ensure we can meet all of the company's commitments. |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
POST BALANCE SHEET EVENTS |
There have been no significant post balance sheet events. |
ON BEHALF OF THE BOARD: |
24 July 2024 |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
DIVIDENDS |
Particulars of recommended dividends are detailed in the notes to the financial statements. |
FUTURE DEVELOPMENTS |
There are no key future developments. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
EMPLOYMENT OF DISABLED PERSONS |
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate. |
EMPLOYEE INVOLVEMENT |
During the year, the policy of providing employees with information about the company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has, in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. |
The strategic report can be found on page 2 of the financial statements. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LODGE HOLDINGS (UK) LIMITED |
Opinion |
We have audited the financial statements of LODGE HOLDINGS (UK) LIMITED (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity 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 Financial Reporting Standard 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: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2024 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 Auditors' 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 directors' 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 financial statements are 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
Opinions on other matters 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LODGE HOLDINGS (UK) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and five, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LODGE HOLDINGS (UK) LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit |
evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
• | the nature of the industry and sector, control environment and business performance including the design of the company remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
• | results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
• | any matters we identified having obtained and reviewed the company documentation of their policies and procedures relating to: |
- | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
- | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
• | the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information. |
Audit response to risks identified |
As a result of performing the above, we did not identify any key audit matters related to the potential risk of |
fraud or irregularities. Our procedures to respond to risks identified included the following: |
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• enquiring of management concerning actual and potential litigation and claims; |
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
• obtaining an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LODGE HOLDINGS (UK) LIMITED |
Audit testing was completed on a targeted sample basis based on our assessment of risk and materiality. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also: |
- | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
- | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. |
- | Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
- | Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Report of the Auditors to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Report of the Auditors. However, future events or conditions may cause the company to cease to continue as a going concern. |
- | Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
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. |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered accountants & statutory auditors |
Stone House |
Stone Road Business Park |
Stoke-On-Trent |
ST4 6SR |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
31.3.24 | 31.3.23 |
as | restated |
Notes | £ | £ |
TURNOVER |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 5 |
Income from shares in group undertakings |
Interest receivable and similar income |
256,997 | 1,397,159 |
Gain/loss on revaluation of investment property |
(225,128 |
) |
922,842 |
31,869 | 2,320,001 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
STATEMENT OF FINANCIAL POSITION |
31 MARCH 2024 |
31.3.24 | 31.3.23 |
as | restated |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Fair value reserve | 19 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up | Fair | Capital |
share | Retained | value | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Fair value transfer | - | (692,974 | ) | 692,974 | - | - |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Fair value transfer | - | 613,409 | (613,409 | ) | - | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2024 |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
LODGE HOLDINGS (UK) LIMITED is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The principal activity of the company is the rental of property. |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain financial assets and liabilities measured at fair value through profit and loss. |
Going concern |
The accounts have been prepared on the going concern basis. The directors believe this to be appropriate as they have expressed their willingness to support the business for the foreseeable future. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The subsidiary company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: |
(a) No cash flow statement has been presented for the subsidiary. |
(b) Disclosures in respect of financial instruments have not been presented. |
(c) No disclosure has been given for the aggregate remuneration of key management personnel. |
Preparation of consolidated financial statements |
The financial statements contain information about LODGE HOLDINGS (UK) LIMITED as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Teams Property Holdings Limited, C/O Dpc Stone House, 55 Stone Road Business Park, Stoke-On-Trent, Staffordshire, England, ST4 6SR. |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Key sources of estimation uncertainty |
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: |
(i) Valuation of investments |
Investments in subsidiary undertakings are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. |
(ii) Valuation of investment property |
As described in the notes to the financial statements, the directors believe, based on professional advice, the investment property to be stated at fair value as at 31 March 2024. |
Revenue recognition |
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. |
Lodge Holdings (UK) Limited hires and rents the company's properties. |
Revenue is recognised in the accounting period in which the services are rendered. |
Investments in subsidiaries |
Investments in subsidiary undertakings are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. |
Investment property |
Investment property has been valued by an independent third party and the directors are of the opinion that there has been no material change since 31 March 2024. |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. |
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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
Corporation tax |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis. |
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. |
4. | EMPLOYEES AND DIRECTORS |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Wages and salaries |
Social security costs |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31.3.24 | 31.3.23 |
as | restated |
Management staff |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Directors' remuneration |
In addition to the directors remuneration above, the directors received additional benefits of £Nil (2023: £33,227). |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Bank loan interest |
Interest payable |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Current tax: |
UK corporation tax |
Under provision of prior year |
taxation | 11,550 | - |
Total current tax |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes | ( |
) |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods |
Capital gains | 29,878 | - |
Revaluation of investment property | (164,007 | ) | - |
changes in tax rates |
Total tax (credit)/charge | (71,869 | ) | 369,108 |
8. | DIVIDENDS |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Ordinary C shares shares of £1 each |
Interim |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
9. | PRIOR YEAR ADJUSTMENT |
The accounts have been restated to reclassify directors loan accounts that were previously included in creditors due within one year that should have been classified as creditors due over one year. |
Summary of prior year accounting impact |
£ |
Increase in creditors due over one year | 3,091,077 |
Decrease in creditors due within one year | 3,091,077 |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 April 2023 |
Disposals | ( |
) |
At 31 March 2024 |
AMORTISATION |
At 1 April 2023 |
Eliminated on disposal | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
11. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertaking |
£ |
COST |
At 1 April 2023 |
Disposals | ( |
) |
At 31 March 2024 |
PROVISIONS |
At 1 April 2023 | 546,883 |
Eliminated on disposal | (546,883 | ) |
At 31 March 2024 | - |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2023 |
Additions |
Disposals | ( |
) |
Revaluations | (225,128 | ) |
Impairments | (84,840 | ) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The business had valuations in the period from 1 April 2023 to 31 March 2024 by Ranmoor Property Chartered Surveyors for all investment property held. The directors believes this to be the fair value at 31 March 2024. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Trade creditors |
Social security and other taxes |
VAT | 66,120 | 23,668 |
Other creditors |
Directors' loan accounts | 1,023,595 | 1,033,227 |
Accruals and deferred income |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Directors' loan accounts | 2,800,417 | 3,091,077 |
16. | SECURED DEBTS |
There is a fixed charge dated 3 March 2023 relating to Martyn Joseph Lodge, Dr Andrew Martin Christmas, Simon Peter Christmas and Edward Charles Lodge over Freehold property knows as 1-6 The Newark Centre, Newark Road, Peterborough, PE1 5UF. |
There is a fixed charge dated 21 April 2023 relating to Martyn Joseph Lodge, Dr Andrew Martin Christmas, Simon Peter Christmas and Edward Charles Lodge over Freehold property knows as Kingsway tyres, Hempton Road, Fakenham, NR21 7LA. |
17. | PROVISIONS FOR LIABILITIES |
31.3.24 | 31.3.23 |
as | restated |
£ | £ |
Deferred tax |
Accelerated capital allowances | ( |
) | ( |
) |
Revaluation of investment |
property | 429,341 | 593,347 |
376,517 | 529,358 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 31 March 2024 |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.24 | 31.3.23 |
value: | as restated |
£ | £ |
Ordinary C shares | £1 | 5,378 | 5,378 |
Ordinary D shares | £1 | 7,051 | 7,051 |
Ordinary E shares | £1 | 8,737 | 8,737 |
Ordinary F shares | £1 | 5,713 | 5,713 |
5,713 | Ordinary G shares | £1 | 5,713 | 5,713 |
336 | Ordinary H shares | £1 | 336 | 336 |
336 | Ordinary I shares | £1 | 336 | 336 |
336 | Ordinary J shares | £1 | 336 | 336 |
33,600 | 33,600 |
19. | RESERVES |
Fair value reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. The revaluation reserve includes the associated deferred tax of £429,341 (2023: £593,347). |
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. |
Profit and loss account - This reserve records retained earnings and accumulated losses. |
20. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
The key personnel of the Company are the directors. Directors' remuneration is disclosed in note 4 of the financial statements. |
Transactions with directors, are conducted under normal market conditions and/or are not material. |
21. | POST BALANCE SHEET EVENTS |
There were no other material events up to the date of approval of the financial statements by the board. |
22. | ULTIMATE CONTROLLING PARTY |
The company is a 100% owned subsidiary of Teams Property Holdings Limited, which is the ultimate parent company. The ultimate parent company prepared consolidated financial statements as at 31 March 2024 and these financial statements may be obtained from C/O DPC |
Stone House, 55 Stone Road Business Park, Stoke-on-Trent, Staffordshire, ST4 6SR |
The ultimate controlling party is M J Lodge by virtue of his controlling interest in the company's parent entity. |
LODGE HOLDINGS (UK) LIMITED (REGISTERED NUMBER: 03691747) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
23. | OPERATING LEASES - LESSOR |
The below amounts are the future minimum lease payments under non-cancellable operating leases due to the company: |
2024 | 2023 |
Within one year | 638,000 | 552,000 |
Between one and five years | 2,552,000 | 2,078,417 |
In more than five years | 2,459,625 | 2,424,875 |
5,649,625 | 5,055,292 |
24. | GOING CONCERN |
The accounts have been prepared on the going concern basis. The directors believe this to be appropriate as they have expressed their willingness to support the business for the foreseeable future. |