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Registered number: 02460827










DONNINGTON VALLEY GROUP LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2023



 
DONNINGTON VALLEY GROUP LIMITED
 

COMPANY INFORMATION


Directors
A G McKenzie 
M V Morris 
B Wilkinson 




Registered number
02460827



Registered office
Buckingham House
West Street

Newbury

Berkshire

RG14 1BE




Independent auditor
James Cowper Kreston Audit
Chartered Accountants and Statutory Auditor

2 Communications Road

Greenham Business Park

Greenham

Newbury

Berkshire

RG19 6AB





 
DONNINGTON VALLEY GROUP LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 23


 
DONNINGTON VALLEY GROUP LIMITED
 

STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

BUSINESS REVIEW
 
The company comprises of a high end four star luxury hotel and spa with golf facilities, which also includes a newly constructed oak framed wedding barn.  The business is focussed primarily on leisure, as well as targeting conference and event business and the business traveller.      
 
During the period to 31st December 2023, trading conditions have improved considerably with revenues growing by 19%, which is largely due to the return to normal business following the coronavirus pandemic.
 
Costs have been impacted by higher inflationary pressures and legislation impacting payroll, with trading profit before taxation at £485,783 (2022: £395,690).
 
The company invested considerably in capital expenditure during the pandemic which has allowed to business to evolve and increase its focus within the leisure sector, and the directors are confident that significant benefits with arise in future years.   
FINANCIAL KEY PERFORMANCE INDICATORS
The directors actively monitor a number of key performance indicators as follows:
Turnover - Increase of 19.3% on prior year
Gross profit margin - Consistent at 83% compared to pre-pandemic trading years
EBITDA - Profit of £905,483 in 2023, and a profit of £709,290 in 2022
The directors also monitor a number of hotel related KPIs in respect of, but not limited to, average room rate and occupancy.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The company uses various financial instruments including cash, loans and items such as trade debtors and trade creditors that arise directly from its operations. The purpose of these financial instruments is to raise finance for the company's operations.
The risks arising from the company's financial instruments are liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and these policies have remained unchanged from previous years.

Liquidity risk
 
The company manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and invest cash assets safely and profitably. 

Page 1

 
DONNINGTON VALLEY GROUP LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Credit risk
 
The company’s principal financial assets are cash and trade debtors. To manage trade debtor credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history. 
The company manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. 
Inflation
 
Whilst UK inflation poses a problem to all businesses the Company seeks to mitigate this somewhat by increasing sales prices in line with inflationary cost increases, however there is a risk that a point is reached where the market will no longer withstand price increases without a determinantal impact on other metrics such as occupancy rates. Management are satisfied that they have sufficient processes in place to mitigate this risk as far as possible. 
 
Energy price risk 
 
The recent energy price increases which were at record highs as a direct result of the Ukraine conflict have now reduced to pre-war levels. In view of this, and to mitigate the risk of any short term energy price fluctuations, the company have taken the decision to contract into a fixed priced agreement through to October 2026.  

FUTURE DEVELOPMENTS

There are no significant future developments that are expected to impact the company. 


This report was approved by the board and signed on its behalf.





A G McKenzie
Director

Date: 19 August 2024

Page 2

 
DONNINGTON VALLEY GROUP LIMITED
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the period ended 31 December 2023.

Principal activity

The principal activity of the Company during the year continued to be that of running a hotel, wedding and events venue, including a spa and golf club.

Directors

The directors who served during the period were:

A G McKenzie 
M V Morris 
B Wilkinson 

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' reports may differ from legislation in other jurisdictions.

Results and dividends

The profit for the period, after taxation, amounted to £485,783 (2022 - £395,690).

The directors do not recommend a dividend for the period ended 31 December 2023 (2022: £NIL). 

Page 3

 
DONNINGTON VALLEY GROUP LIMITED
 

DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, James Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





A G McKenzie
Director

Date: 19 August 2024

Page 4

 
DONNINGTON VALLEY GROUP LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DONNINGTON VALLEY GROUP LIMITED
 

Opinion


We have audited the financial statements of Donnington Valley Group Limited (the 'Company') for the period ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 December 2023 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
DONNINGTON VALLEY GROUP LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DONNINGTON VALLEY GROUP LIMITED (CONTINUED)

Opinion 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 Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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 Directors' report.


We have nothing to report in respect of the following matters in relation to which 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 Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
DONNINGTON VALLEY GROUP LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DONNINGTON VALLEY GROUP LIMITED (CONTINUED)

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.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. 
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:
 
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws  and regulations;
Reviewing minutes of meetings of those charged with governance;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and revieing accounting estimates for bias.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.





Page 7

 
DONNINGTON VALLEY GROUP LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DONNINGTON VALLEY GROUP LIMITED (CONTINUED)

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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Jonathan Baillie BA (Hons) ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Chartered Accountants and Statutory Auditor
  
2 Communications Road
Greenham Business Park
Greenham
Newbury
Berkshire
RG19 6AB

21 August 2024
Page 8

 
DONNINGTON VALLEY GROUP LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
9,466,635
7,937,978

Cost of sales
  
(1,655,227)
(1,350,104)

Gross profit
  
7,811,408
6,587,874

Administrative expenses
  
(7,325,625)
(5,995,727)

Other operating income
  
-
6,000

Operating profit
 5 
485,783
598,147

Interest payable and similar expenses
 8 
-
(202,457)

Profit before tax
  
485,783
395,690

Profit for the financial period
  
485,783
395,690

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 23 form part of these financial statements.

Page 9

 
DONNINGTON VALLEY GROUP LIMITED
REGISTERED NUMBER:02460827

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
17,951,366
18,224,932

Investments
 11 
102
102

  
17,951,468
18,225,034

Current assets
  

Stocks
 12 
103,718
99,256

Debtors: amounts falling due within one year
 13 
1,770,862
974,276

Cash at bank and in hand
 14 
173,478
127,079

  
2,048,058
1,200,611

Creditors: amounts falling due within one year
 15 
(33,521,524)
(33,433,426)

Net current liabilities
  
 
 
(31,473,466)
 
 
(32,232,815)

Total assets less current liabilities
  
(13,521,998)
(14,007,781)

  

Net liabilities
  
(13,521,998)
(14,007,781)


Capital and reserves
  

Called up share capital 
 18 
1,000,000
1,000,000

Profit and loss account
 19 
(14,521,998)
(15,007,781)

  
(13,521,998)
(14,007,781)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




A G McKenzie
Director

Date: 19 August 2024

The notes on pages 12 to 23 form part of these financial statements.

Page 10

 
DONNINGTON VALLEY GROUP LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 December 2021
1,000,000
(15,403,471)
(14,403,471)



Profit for the year
-
395,690
395,690



At 1 January 2023
1,000,000
(15,007,781)
(14,007,781)



Profit for the period
-
485,783
485,783


At 31 December 2023
1,000,000
(14,521,998)
(13,521,998)


The notes on pages 12 to 23 form part of these financial statements.

Page 11

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


General information

Donnington Valley Group Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom and registered in England and Wales. The address of the registered office is Buckingham House, West Street, Newbury, Berkshire, RG14 1BE.

2.Accounting policies

 
2.1

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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Stockford Limited as at 31 December 2023 and these financial statements may be obtained from Buckingham House, West Street, Newbury, Berkshire, England, RG14 1BE.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.

The financial statements contain information about Donnington Valley Group Limited as an individual entity and do not contain consolidated financial information as the parent of the Group. The Company and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Stockford Limited, a company registered in England and Wales.

 
2.4

Going concern

The financial results for the year and also post year end are significantly improved on 2022.
The parent company Stockford Limited has agreed to provide support if required and has confirmed to the Company that it will make available sufficient financial resources as required to enable the Company to meet its short term liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements.
In conclusion the directors consider that the Company will have adequate cash and other liquid resources to meet its commitments, and therefore the financial statements are appropriately prepared on a going concern basis.

Page 12

 
DONNINGTON VALLEY GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Revenue

The turnover shown in the Statement of Income and Retained Earnings represents the value of goods and services provided during the year, stated net of discounts and value added tax. Turnover can be split into two main areas:
Sale of accommodation:
Turnover in relation to the provision of accommodation is recognised over the period of stay in the hotel. Where a customer pays in advance of their stay that turnover is deferred accordingly.
Sale of food, beverages, leisure and sundry goods:
Turnover in relation to the provision of food, drink and other goods is recognised at the point the sale of the items is made to the customer.
Sale of memberships: 
Membership income is recognised on the basis of the amounts receivable for the year. Where payments are received in advance of services provided, the amounts are recorded as deferred income and included within creditors. 
Post Barn sales:
Turnover in relation to the provision of events services and rental of 'The Post' is recognised on delivery of the service. Where a customer pays in advance of their event that turnover is deferred accordingly.

 
2.6

Tangible fixed assets

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.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 13

 
DONNINGTON VALLEY GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

Depreciation is provided on the following basis:

Freehold property
-
0% Straight line
Plant and machinery
-
10-33% Straight line
Motor vehicles
-
25% Straight line
Fixtures and fittings
-
20% Straight line

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 the Statement of comprehensive income.
The condition and upkeep of the freehold property is carried out on a continuous basis by the company with any payments being charged to the profit and loss account as it arises. This depreciation policy reflects the expected benefits of such assets and provides consistency with the depreciation methods used by other entities within the same industry.
In accordance with GAAP (Generally Accepted Accounting Practice), the assets under construction do not begin to be depreciated until they come into use. Once assets under construction come into use they are transferred to the relevant categories and commence being depreciated if applicable.

 
2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.8

Stocks

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 weighted average basis. Work in progress and finished goods include labour and attributable overheads.

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.

 
2.9

Debtors

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.

 
2.10

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.

Page 14

 
DONNINGTON VALLEY GROUP LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Creditors

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.

 
2.12

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.

  
2.13

Financial instruments

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.

 
2.14

Pensions

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.

 
2.15

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

 
2.16

Finance costs

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.

Page 15

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In applying the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historic experience and other factors that are considered to be applicable. Due to the inherent subjectivity in making such judgements, estimates and assumptions, the actual results and outcomes may differ. The estimates and underlying assumptions are reviewed on an ongoing basis. 
The key assumptions concerning the future, and other key 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:
Determining residual values and useful economic lives of tangible fixed assets
The company depreciates tangible fixed assets over their useful economic lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of the assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management determining the residual values for property, plant and equipment. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already in the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Provision of rooms
3,269,085
2,900,750

Sale of food and beverages
3,618,518
3,127,832

Provision of spa and leisure services
866,442
677,730

Memberships
482,310
395,688

Provision of sundry services
419,876
350,442

Post Barn
810,404
485,536

9,466,635
7,937,978


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
419,700
111,143

Defined contibution pension costs
106,058
89,063

Page 16

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

6.


Auditor's remuneration

During the period, the Company obtained the following services from the Company's auditor:


2023
2022
£
£

Audit of the Company's financial statements
8,580
8,170


7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
3,653,173
3,036,338

Social security costs
243,190
210,099

Cost of defined contribution scheme
106,058
89,063

4,002,421
3,335,500


The average monthly number of employees, including the directors, during the period was as follows:


        2023
        2022
            No.
            No.







Management and administration staff
13
7



Sales and marketing staff
18
9



Operational staff
176
168

207
184


8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
-
202,457


9.


Taxation


2023
2022
£
£


Total current tax
-
-
Page 17

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
 
9.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
485,783
395,690


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
162,133
89,049

Effects of:


Remeasurement of deferred tax for changes in tax rates
10,319
-

Deferred tax not recognised
(172,452)
-

Group relief
-
(89,049)

Total tax charge for the period/year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


Page 18

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

10.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
19,669,231
179,948
12,706
905,354
20,767,239


Additions
-
77,655
-
68,479
146,134


Transfers between classes
(405,574)
-
-
405,574
-



At 31 December 2023

19,263,657
257,603
12,706
1,379,407
20,913,373



Depreciation


At 1 January 2023
2,096,185
59,596
5,368
381,158
2,542,307


Charge for the period
-
19,544
2,541
397,615
419,700



At 31 December 2023

2,096,185
79,140
7,909
778,773
2,962,007



Net book value



At 31 December 2023
17,167,472
178,463
4,797
600,634
17,951,366



At 31 December 2022
17,573,046
120,352
7,338
524,196
18,224,932

Included in freehold land and buildings is freehold land of £2,898,000 which is not depreciated. 

Page 19

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

11.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
102



At 31 December 2023
102





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Principal activity

Class of shares

Holding

Deanwood Park Limited
Running a golf clubhouse
Ordinary
100%


12.


Stocks

2023
2022
£
£

Finished goods and goods for resale
103,718
99,256



13.


Debtors

2023
2022
£
£


Trade debtors
275,743
266,116

Amounts owed by group undertakings
1,142,485
315,785

Other debtors
158,787
148,829

Prepayments and accrued income
193,847
243,546

1,770,862
974,276



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
173,478
127,079


Page 20

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Other loans
6,520,786
6,520,786

Trade creditors
411,199
387,419

Amounts owed to group undertakings
25,351,926
25,395,780

Other taxation and social security
63,821
54,199

Accruals and deferred income
1,173,792
1,075,242

33,521,524
33,433,426


Amounts owed to group undertakings are unsecured, interest free, and are repayable on demand.
Other loans relate to a loan from a director of the Company’s ultimate parent company. This loan is repayable on demand and is non-interest bearing. 


16.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Other loans
6,520,786
6,520,786



17.


Financial instruments

2023
2022
£
£

Financial assets


Cash at bank and in hand
173,478
127,079

Financial assets that are debt instruments measured at amortised cost
1,577,015
730,730

1,750,493
857,809


Financial liabilities


Financial liabilities measured at amortised cost
32,373,506
32,392,475


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by group undertakings and other debtors. 


Financial liabilities measured at amortised cost comprise trade creditors, bank loans, other loans, amounts owed to group undertakings and other creditors. 

Page 21

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000,000 (2022 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000



19.


Reserves

Profit and loss account

The profit and loss account is the Company's accumulated retained profits or losses as at the year end. 


20.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted £106,058 (2022: £89,063). 


21.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
54,496
81,095

Later than 1 year and not later than 5 years
140,885
172,352

Later than 5 years
3,237
28,632

198,618
282,079


22.


Related party transactions

The Company is exempt from disclosing related party transactions with other 100% owned members of the Group headed by Stockford Limited by virtue of FRS 102 section 33.1A.
At the year end, included in other loans is a balance of £6,520,786 (2022: £6,520,786) owed to Sir P C Michael CBE, director of Stockford Limited, the parent company of Donnington Valley Group Limited.
During the year, land of £180,000 was sold to P Michael, director of Stockford Limited, the parent company of Donnington Valley Group Limited. 

Page 22

 
DONNINGTON VALLEY GROUP LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

23.


Controlling party

The company considers Stockford Limited, a company incorporated in England and Wales, to be its ultimate parent company throughout the current and previous years. Stockford Limited is the parent of both the largest and smallest groups in which the results of the company are consolidated. Copies of the group financial statements for Stockford Limited are available from its registered office: Buckingham House, West Street, Newbury, Berkshire, England, RG14 1BE.


Page 23