Company Registration No. 03247251 (England and Wales)
STONECHECK PLC
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MAY 2024
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
STONECHECK PLC
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10 - 11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
STONECHECK PLC
COMPANY INFORMATION
Directors
Mr A P Wood
Mr M Wallis
Mr R C Kamper
Mr N Pritchard
Mr M Shirley
Mr J Tellett
Secretary
Mr A P Wood
Company number
03247251
Registered office
6 North Street
Oundle
Peterborough
PE8 4AL
Auditor
TC Group
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
STONECHECK PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 1 -
The directors present the strategic report for the year ended 31 May 2024.
Fair review of the business
The Board of Stonecheck plc reports that the equity of the company increased by £46k in the year. Cash held increased by £63k.
The Board have committed to £171k of expenditure on the irrigation system. This is to install a new system to the tees and modification of the existing greens sprinkler system. Furthermore the pumphouse will be refurbished and made safer. These actions should future proof the system.
The Tenant remains strong. The principle of a turnover rent has been agreed for the year and reflected in the accounts. The Tenant has applied the right to a second ten year tenancy, commencing in 2029.
The Board has engaged with a developer, who has applied for part of the site to be put on the list of development sites in Huntingdonshire. This could only potentially happen in 2039 when the current extended lease ends. This action is deemed essential to protect shareholders interests against any potential risks to the stability of the Company’s income stream through economic change across the golf industry or the equilibrium of the current tenancy.
The Board continues to try and engage with the Tenant to assess opportunities to increase turnover. As this may involve a capital investment, and with the commitment to £171k of works to the irrigation system, the Board has recommended no interim dividend this year.
Principal risks and uncertainties
The directors continually review and monitor key risks and uncertainties which are summarised as follows:
- Failing or loss of tenant
- Degradation of the company's assets
Financial Instruments
Objectives and policies
The purpose of using financial instruments is to finance business operations
Price risk, credit risk, liquidity risk and cash flow risk
The business' principal financial instruments comprise bank balances, trade debtors and trade creditors.
In respect of bank balances, the liquidity risk is managed by maintaining a positive balance at the bank.
Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding.
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. It is the company's policy to pay suppliers according to the payment terms negotiated with them.
Mr R C Kamper
Director
16 September 2024
STONECHECK PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 May 2024.
Principal activities
The principal activity of the company continued to be that of the ownership and licensing of land and premises known as Brampton Park Golf Club.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A P Wood
Mr M Wallis
Mr R C Kamper
Mr N Pritchard
Mr M Shirley
Mr J Tellett
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr R C Kamper
Director
16 September 2024
STONECHECK PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
The directors are responsible for preparing the annual 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 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.
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.
STONECHECK PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STONECHECK PLC
- 4 -
Opinion
We have audited the financial statements of Stonecheck plc (the 'company') for the year ended 31 May 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 May 2024 and of its profit 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.
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 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.
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 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.
STONECHECK PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STONECHECK PLC
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year 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 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, 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.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to 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; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
STONECHECK PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STONECHECK PLC
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to 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; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing 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, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely
the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
STONECHECK PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STONECHECK PLC
- 7 -
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 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.
John Grant (Senior Statutory Auditor)
For and on behalf of TC Group
16 September 2024
Brightfield Business Hub
Bakewell Road
Orton Southgate
Peterborough
Cambridgeshire
PE2 6XU
STONECHECK PLC
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
114,381
96,000
Administrative expenses
(53,115)
(104,806)
Operating profit/(loss)
4
61,266
(8,806)
Interest receivable and similar income
6
3,507
4,532
Interest payable and similar expenses
7
(537)
Profit/(loss) before taxation
64,773
(4,811)
Tax on profit/(loss)
8
(18,390)
Profit/(loss) for the financial year
46,383
(4,811)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
STONECHECK PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
2024
2023
£
£
Profit/(loss) for the year
46,383
(4,811)
Other comprehensive income
-
-
Total comprehensive income for the year
46,383
(4,811)
STONECHECK PLC
BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
9,667
11,667
Tangible assets
11
23,137
31,663
Investment property
12
1,900,000
1,900,000
1,932,804
1,943,330
Current assets
Debtors
13
26,150
16,305
Cash at bank and in hand
444,428
380,879
470,578
397,184
Creditors: amounts falling due within one year
14
(72,370)
(74,275)
Net current assets
398,208
322,909
Total assets less current liabilities
2,331,012
2,266,239
Provisions for liabilities
Deferred tax liability
15
18,390
(18,390)
-
Net assets
2,312,622
2,266,239
Capital and reserves
Called up share capital
16
1,392,870
1,392,870
Share premium account
10,374
10,374
Capital redemption reserve
394,516
394,516
Profit and loss reserves
514,862
468,479
Total equity
2,312,622
2,266,239
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
STONECHECK PLC
BALANCE SHEET (CONTINUED)
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 16 September 2024 and are signed on its behalf by:
Mr R C Kamper
Director
Company registration number 03247251 (England and Wales)
STONECHECK PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 June 2022
1,478,180
10,374
309,206
1,397,917
3,195,677
Year ended 31 May 2023:
Loss and total comprehensive income
-
-
-
(4,811)
(4,811)
Issue of share capital
16
(85,310)
-
-
(85,310)
Dividends
9
-
-
-
(839,317)
(839,317)
Own shares acquired
-
-
-
(85,310)
(85,310)
Redemption of shares
16
85,310
85,310
Balance at 31 May 2023
1,392,870
10,374
394,516
468,479
2,266,239
Year ended 31 May 2024:
Profit and total comprehensive income
-
-
-
46,383
46,383
Balance at 31 May 2024
1,392,870
10,374
394,516
514,862
2,312,622
STONECHECK PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
59,626
33,303
Interest paid
(537)
Net cash inflow from operating activities
59,626
32,766
Investing activities
Proceeds from disposal of tangible fixed assets
416
Interest received
3,507
4,532
Net cash generated from investing activities
3,923
4,532
Financing activities
Purchase of own shares
(85,310)
Dividends paid
(839,317)
Net cash used in financing activities
-
(924,627)
Net increase/(decrease) in cash and cash equivalents
63,549
(887,329)
Cash and cash equivalents at beginning of year
380,879
1,268,208
Cash and cash equivalents at end of year
444,428
380,879
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 14 -
1
Accounting policies
Company information
Stonecheck plc is a public company limited by shares incorporated in England and Wales. The registered office is 6 North Street, Oundle, Peterborough, PE8 4AL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Intangible Asset
10 years on a straight line
1.5
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:
Plant and equipment
15% - 25% reducing balance and 3 years straight line.
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 credited or charged to profit or loss.
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 16 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 19 -
1.12
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.
1.13
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Investment properties are valued at the open market value and is based on an Independent Professional Valuation that took place by Crosthwaites on 17 August 2022. The directors believe there has been no material changes to the value of investment properties since the last Independent Professional Valuation.
The net profit rent for the 31 May 2024 is an estimate as the board have not yet received the net profit certificate from the tenant. The board have estimated a net profit rent of £26,150 which has been included as accrued income.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
License fee
114,381
96,000
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Other revenue
Interest income
3,507
4,532
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
4,000
3,607
Depreciation of owned tangible fixed assets
6,240
8,282
Loss on disposal of tangible fixed assets
1,870
6,350
Amortisation of intangible assets
2,000
2,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
3,507
4,532
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
537
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 21 -
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
18,390
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
64,773
(4,811)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
16,193
(914)
Tax effect of expenses that are not deductible in determining taxable profit
2,197
914
Taxation charge for the year
18,390
-
9
Dividends
2024
2023
£
£
Interim paid
839,317
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 22 -
10
Intangible fixed assets
Intangible Asset
£
Cost
At 1 June 2023 and 31 May 2024
20,000
Amortisation and impairment
At 1 June 2023
8,333
Amortisation charged for the year
2,000
At 31 May 2024
10,333
Carrying amount
At 31 May 2024
9,667
At 31 May 2023
11,667
11
Tangible fixed assets
Plant and equipment
£
Cost
At 1 June 2023
156,887
Disposals
(39,158)
At 31 May 2024
117,729
Depreciation and impairment
At 1 June 2023
125,224
Depreciation charged in the year
6,240
Eliminated in respect of disposals
(36,872)
At 31 May 2024
94,592
Carrying amount
At 31 May 2024
23,137
At 31 May 2023
31,663
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 23 -
12
Investment property
2024
£
Fair value
At 1 June 2023 and 31 May 2024
1,900,000
The fair value of the company's Investment Properties were valued on 17 August 2022 by an independent professional valuer - Crosthwaites. Assets held for investment are stated at open market value. In the opinion of the directors, this value on the 17 August 2022 is reflective of the value as at 31 May 2024.
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
298
Other debtors
1,007
Prepayments and accrued income
26,150
15,000
26,150
16,305
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
8,997
3,285
Corporation tax
107
107
Other taxation and social security
349
3,135
Other creditors
56,528
61,420
Accruals and deferred income
6,389
6,328
72,370
74,275
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
18,390
-
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
15
Deferred taxation
(Continued)
- 24 -
2024
Movements in the year:
£
Liability at 1 June 2023
-
Charge to profit or loss
18,390
Liability at 31 May 2024
18,390
The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,392,870
1,392,870
1,392,870
1,392,870
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
16
Share capital
(Continued)
- 25 -
Rights, preferences and restrictions
1) Voting rights - Subject to any special terms as to voting attached by or in accordance with the Articles to any shares, at a general meeting of the company, on a show of hands, every member who is present in person or by proxy has one vote and, on a poll, every member who is present in person or by proxy has one vote for every share of which he is the holder. If a member appearing to the company to be interested in (applying for those purposes the definitions contained in Section 203 of the Act) more than 15,000 shares has been served with a notice by the company stating that fact and has failed to establish to the satisfaction of the Board that he is not so interested, then that member and the holders of the other shares specified in the notice from the company as being shares in which the member is so interested shall together be entitled, on a poll, to 4,700 votes only. The company may only agree to a sale or other disposal of the golf course or any material part of it other than by way of a lease to a golf club operator with the prior consent of members holding between them not less than 75% of the issued share capital of the company at any time.
2) Transfer of shares - The Articles contain pre-emption provisions whereby any member wishing to transfer shares must first offer them to such person as the Board may nominate at such price as shall be agreed with that member or certified by the auditors as the fair value thereof. Subject to any direction to the contrary which may be given by Special Resolution no transfer of any share shall be registered before 1 June 1999 save for any transfer in the circumstances as set out below without a transfer notice being required. The provisions shall not apply to a transfer by a member to a spouse, child or grandchild of that member unless the directors shall, in their absolute discretion, require that a transfer notice be deemed served in respect of such a transfer. The personal representatives or trustee in bankruptcy or liquidator of any deceased member or any member who has become bankrupt or which has gone into liquidation or the person becoming entitled to a share in consequence of the death or bankruptcy of a member may apply to be registered as the holder or holders of all the shares held by such member and the directors shall, in their absolute discretion, determine whether or not to register such person or persons as the holder of those shares or to require that a transfer notice be deemed served in respect of those shares in which event the provisions of Regulation 30 of Table A shall be modified accordingly. The instrument of transfer of a share shall be in any usual form or in any other form which the Directors may approve. The Directors shall only register a transfer upon receipt by the company from the transferor of a registration fee of the greater of £50 or 5% of the consideration passing from the transferee to the transferor. If a member appearing to the company to be interested in (applying for these purposes the definitions contained in Section 203 of the Act) more than 15,000 Shares has been served with a notice by the company stating that fact and has failed to establish to the satisfaction of the Board within 28 days of the notice that he is not interested then the company must serve notice on that member requiring him to transfer the shares registered in his name to a person nominated by the company in that notice.
17
Commitments
At the year end the company was committed to approximately £171k of expenditure in relation to refurbishing the golf course irrigation system.
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 26 -
18
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
81,000
81,000
Between two and five years
324,000
324,000
In over five years
81,000
405,000
486,000
19
Directors' transactions
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Directors -
-
1,007
(1,007)
-
1,007
(1,007)
-
20
Control
The company is controlled by no one party.
STONECHECK PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 27 -
21
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
46,383
(4,811)
Adjustments for:
Taxation charged
18,390
Finance costs
537
Investment income
(3,507)
(4,532)
Loss on disposal of tangible fixed assets
1,870
6,350
Amortisation and impairment of intangible assets
2,000
2,000
Depreciation and impairment of tangible fixed assets
6,240
8,282
Movements in working capital:
(Increase)/decrease in debtors
(9,845)
10,377
(Decrease)/increase in creditors
(1,905)
14,993
Cash generated from operations
59,626
33,196
22
Analysis of changes in net funds
1 June 2023
Cash flows
31 May 2024
£
£
£
Cash at bank and in hand
380,879
63,549
444,428
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