Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31truetruetruetruetruetrue2012023-01-01falseNo description of principal activity194truefalsefalse 02930961 2023-01-01 2023-12-31 02930961 2022-01-01 2022-12-31 02930961 2023-12-31 02930961 2022-12-31 02930961 2022-01-01 02930961 2 2023-01-01 2023-12-31 02930961 5 2023-01-01 2023-12-31 02930961 6 2023-01-01 2023-12-31 02930961 6 2022-01-01 2022-12-31 02930961 1 2023-01-01 2023-12-31 02930961 e:Director3 2023-01-01 2023-12-31 02930961 e:Director3 2023-12-31 02930961 e:Director4 2023-01-01 2023-12-31 02930961 e:Director4 2023-12-31 02930961 e:Director5 2023-01-01 2023-12-31 02930961 e:Director5 2023-12-31 02930961 e:RegisteredOffice 2023-01-01 2023-12-31 02930961 e:Agent1 2023-01-01 2023-12-31 02930961 d:Buildings 2023-01-01 2023-12-31 02930961 d:Buildings 2023-12-31 02930961 d:Buildings 2022-12-31 02930961 d:Buildings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02930961 d:PlantMachinery 2023-01-01 2023-12-31 02930961 d:PlantMachinery 2023-12-31 02930961 d:PlantMachinery 2022-12-31 02930961 d:PlantMachinery d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02930961 d:MotorVehicles 2023-01-01 2023-12-31 02930961 d:MotorVehicles 2023-12-31 02930961 d:MotorVehicles 2022-12-31 02930961 d:MotorVehicles d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02930961 d:FurnitureFittings 2023-01-01 2023-12-31 02930961 d:FurnitureFittings 2023-12-31 02930961 d:FurnitureFittings 2022-12-31 02930961 d:FurnitureFittings d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02930961 d:OfficeEquipment 2023-01-01 2023-12-31 02930961 d:OfficeEquipment 2023-12-31 02930961 d:OfficeEquipment 2022-12-31 02930961 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02930961 d:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 02930961 d:CurrentFinancialInstruments 2023-12-31 02930961 d:CurrentFinancialInstruments 2022-12-31 02930961 d:CurrentFinancialInstruments 1 2023-12-31 02930961 d:CurrentFinancialInstruments 1 2022-12-31 02930961 d:Non-currentFinancialInstruments 2023-12-31 02930961 d:Non-currentFinancialInstruments 2022-12-31 02930961 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 02930961 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 02930961 d:Non-currentFinancialInstruments d:AfterOneYear 2023-12-31 02930961 d:Non-currentFinancialInstruments d:AfterOneYear 2022-12-31 02930961 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-12-31 02930961 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-12-31 02930961 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-12-31 02930961 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-12-31 02930961 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 02930961 d:ReportableOperatingSegment1 2022-01-01 2022-12-31 02930961 d:ReportableOperatingSegment2 2023-01-01 2023-12-31 02930961 d:ReportableOperatingSegment2 2022-01-01 2022-12-31 02930961 d:ReportableOperatingSegment3 2023-01-01 2023-12-31 02930961 d:ReportableOperatingSegment3 2022-01-01 2022-12-31 02930961 d:ReportableOperatingSegment5 2023-01-01 2023-12-31 02930961 d:ReportableOperatingSegment5 2022-01-01 2022-12-31 02930961 d:UKTax 2023-01-01 2023-12-31 02930961 d:UKTax 2022-01-01 2022-12-31 02930961 d:ShareCapital 2023-12-31 02930961 d:ShareCapital 2022-12-31 02930961 d:ShareCapital 2022-01-01 02930961 d:SharePremium 2023-12-31 02930961 d:SharePremium 2 2023-01-01 2023-12-31 02930961 d:SharePremium 2022-12-31 02930961 d:SharePremium 2022-01-01 02930961 d:RevaluationReserve 2023-01-01 2023-12-31 02930961 d:RevaluationReserve 2023-12-31 02930961 d:RevaluationReserve 2 2023-01-01 2023-12-31 02930961 d:RevaluationReserve 5 2023-01-01 2023-12-31 02930961 d:RevaluationReserve 2022-12-31 02930961 d:RevaluationReserve 2022-01-01 02930961 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02930961 d:RetainedEarningsAccumulatedLosses 2023-12-31 02930961 d:RetainedEarningsAccumulatedLosses 2 2023-01-01 2023-12-31 02930961 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 02930961 d:RetainedEarningsAccumulatedLosses 2022-12-31 02930961 d:RetainedEarningsAccumulatedLosses 2022-01-01 02930961 d:AcceleratedTaxDepreciationDeferredTax 2023-12-31 02930961 d:AcceleratedTaxDepreciationDeferredTax 2022-12-31 02930961 d:TaxLossesCarry-forwardsDeferredTax 2023-12-31 02930961 d:TaxLossesCarry-forwardsDeferredTax 2022-12-31 02930961 d:RetirementBenefitObligationsDeferredTax 2023-12-31 02930961 d:RetirementBenefitObligationsDeferredTax 2022-12-31 02930961 d:OtherDeferredTax 2023-12-31 02930961 d:OtherDeferredTax 2022-12-31 02930961 e:OrdinaryShareClass1 2023-01-01 2023-12-31 02930961 e:OrdinaryShareClass1 2023-12-31 02930961 e:OrdinaryShareClass1 2022-12-31 02930961 e:OrdinaryShareClass2 2023-01-01 2023-12-31 02930961 e:OrdinaryShareClass2 2023-12-31 02930961 e:OrdinaryShareClass2 2022-12-31 02930961 e:OrdinaryShareClass3 2023-01-01 2023-12-31 02930961 e:OrdinaryShareClass3 2023-12-31 02930961 e:OrdinaryShareClass3 2022-12-31 02930961 e:FRS102 2023-01-01 2023-12-31 02930961 e:Audited 2023-01-01 2023-12-31 02930961 e:FullAccounts 2023-01-01 2023-12-31 02930961 e:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02930961 d:WithinOneYear 2023-12-31 02930961 d:WithinOneYear 2022-12-31 02930961 2 2023-01-01 2023-12-31 02930961 5 2023-01-01 2023-12-31 02930961 9 2023-01-01 2023-12-31 02930961 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 02930961










FORMBY HALL GOLF CLUB LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
FORMBY HALL GOLF CLUB LIMITED
 
 
COMPANY INFORMATION


Directors
Jerome Fouille (resigned 23 April 2024)
Omar El-Masri (resigned 31 July 2023)
Paul Sarling (appointed 23 April 2024)




Registered number
02930961



Registered office
Formby Hall Golf Resort & Spa
Southport Old Road

Formby

Southport

L37 0AB




Independent auditors
Haysmacintyre LLP

10 Queen Street Place

London

EC4R 1AG




Bankers
Allied Irish Banking Group




Solicitors
CMS Cameron McKenna Nabarro Olswang LLP

London

EC4N 6AF





 
FORMBY HALL GOLF CLUB LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Statement of Financial Position
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 28

 
FORMBY HALL GOLF CLUB LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report together with the audited financial statements for the year ended 31 December 2023.  

Principal Activities
 
The Company’s principal activity is the ownership and operation of a golf club, hotel and spa located in the United Kingdom.

Review of the business
 
The Company seeks to maximise its revenues and optimise its profit conversion through the active management of average daily rates and monitoring payroll and costs associated with each revenue stream.
A summary of the key financial and other performance indicators during the year are as follows:
 

2023
2022

£
£
Turnover
7,679,446
7,554,812
Gross Profit
3,278,860
2,988,838
Gross Profit %
42.7%
39.6%
Operating loss
(141,255)
(587,210)
EBITDA
195,785
(243,582)
Shareholder funds
2,105,521
6,099,776

As the prime measure of our economic output, revenue growth is key to measuring shareholder return and the success of our expansion and repositioning strategies.
Gross profit provides an indication of the quality of turnover growth and is a measure of the value added by the company’s operating activities.
Hotel EBITDA is the prime indicator used to measure the performance year on year of the hotel.
Overall, the directors are satisfied with the results and, despite the current difficult trading conditions, view the future prospects of the business positively.  

Page 1

 
FORMBY HALL GOLF CLUB LIMITED
 

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

Principle risks and uncertainties
 
The Company’s activities expose it to a number of financial risks including credit risk, cash flow risk, liquidity risk and price risk. The use of financial derivatives to manage risks is subject to Board approval and no financial derivatives are used for speculative purposes.
Cash flow risk
The Company’s business is affected by the strength of sterling, with a strong sterling adversely impacting the effective prices paid by international guests. These risks are small in the context of the Company’s operations and therefore it does not use financial instruments to manage its exposure to them due to cost benefit considerations.
The business continues to make a gross profit, although has made an operating loss in the year. It is  cash generative albeit at a level which has resulted in breaches of its covenants with its Principal Lender in the year. .
Competitive risks
Management reviews the hotel against a selected group of competitor hotels. These reports allow the Company to compare accommodation occupancy percentage, average rate, revenue per available room against the competitive group.
Hotels are generally location driven and there are no new hotels planned within the immediate vicinity of the Company’s hotel.
Credit risk
The Company’s principal financial assets are bank balances and cash, trade and other receivables. 
The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful debts.  An allowance for impairment is made where there is an identified loss event which, based upon previous experience, is considered to be irrecoverable.
Economic environment
The Company operates in a competitive environment influenced by the UK economy. Adverse economic and financial market developments could lead to lower revenues and higher costs. Experience shows a recession lessens both leisure and business travel.  
The subsequent rise in interest rates has caused the Company to breach its covenants with its Principal Lender.  Although it is anticipated that interest rates will come down, the Board remains in discussions with the Principal Lender regarding reviewing and revising certain covenants. Notwithstanding this, the Company continues to be profitable and cash generative and the Board are confident the Principal Lender will continue to support the business. 
Other risks
Other risks facing the hotel industry are ones that reduce or prevent travel. The continuing threat of terrorism and the economic uncertainty can impact hotel performance. The reliance of hotels on economic growth as well as consumer confidence also plays a role.


This report was approved by the board on 8 October 2024 and signed on its behalf.



Paul Sarling
Director
Page 2

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

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;

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.

Results and dividends

The loss for the year, after taxation, amounted to £1,728,044 (2022 - loss £995,450).

Directors

The directors who served during the year were:

Jerome Fouille (resigned 23 April 2024)
Omar El-Masri (resigned 31 July 2023)

Future developments

The planning permission for a planned expansion of bedrooms and spa facilities was allowed to lapse by the previous Board.  The current Board is reviewing all options available, including the potential to reapply for the planning permission, with the support of the Principal Lender.  The hotel business continues to operate in the normal course of doing business as a going concern with no impact on current operations.

Page 3

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

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 auditors are 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 auditors are aware of that information.

Post balance sheet events

On 23 April 2024, the secured shares were charged in favour of a Lender by way of a fixed charge. This Lender subsequently appointed Receivers over the shares in the Company. 
There has been no change to the day to day management, or operations, of the Company since the change in control.  

Auditors

The auditorsHaysmacintyre LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 8 October 2024 and signed on its behalf.
 





Paul Sarling
Director
Page 4

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FORMBY HALL GOLF CLUB LIMITED
 

Opinion


We have audited the financial statements of Formby Hall Golf Club Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, 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 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 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.


Material uncertainty related to going concern


We draw attention to note 2.3 in the financial statements, which indicates that the ongoing negotiations with the principal lender may cast significant doubt on the Company's ability to continue as a going concern. As stated in note 2.3, these events or conditions, along with the other matters as set forth in note 2.3, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included review of the cashflow forecasts to December 2025 as well as review of correspondence with the Lender.


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


Page 5

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FORMBY HALL GOLF CLUB LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.


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 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 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

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FORMBY HALL GOLF CLUB LIMITED (CONTINUED)


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 an Auditors' 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the business and trade regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
- Inspecting correspondence with tax authorities;
- Consideration of known or suspected instances of non-compliance with laws and regulations;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates.


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.


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 Auditors' Report.


Page 7

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FORMBY HALL GOLF CLUB 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 Auditors' 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.





Emma Bernardez (Senior Statutory Auditor)
  
for and on behalf of
Haysmacintyre LLP
 
Statutory Auditors
  
10 Queen Street Place
London
EC4R 1AG

8 October 2024
Page 8

 
FORMBY HALL GOLF CLUB LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

Turnover
 4 
7,679,446
7,554,812

Cost of sales
  
(4,400,586)
(4,565,974)

Gross profit
  
3,278,860
2,988,838

Administrative expenses
  
(3,420,115)
(3,576,048)

Operating loss
  
(141,255)
(587,210)

Interest receivable and similar income
 7 
75,979
3,284

Interest payable and similar expenses
 8 
(1,119,775)
(599,792)

Fair value movements on financial derivatives
  
105,054
-

Loss before tax
  
(1,079,997)
(1,183,718)

Tax on loss
 9 
(648,047)
188,268

Loss for the financial year
  
(1,728,044)
(995,450)

Other comprehensive income for the year
  

Gain/(loss) on revaluation of land and buildings
  
(3,957,940)
-

Deferred tax on revaluation of land and buildings
 18 
1,691,729
-

Other comprehensive income for the year
  
(2,266,211)
-

  

Total comprehensive income for the year
  
(3,994,255)
(995,450)

All amounts in the income statement relate to continuing activities.

The notes on pages 12 to 28 form part of these financial statements.
Page 9

 
FORMBY HALL GOLF CLUB LIMITED
REGISTERED NUMBER: 02930961

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
18,352,114
22,538,673

Current assets
  

Stocks
 12 
134,433
140,016

Debtors: amounts falling due within one year
 13 
546,324
425,903

Cash at bank and in hand
 14 
410,710
641,367

  
1,091,467
1,207,286

Creditors: amounts falling due within one year
 15 
(17,336,672)
(3,775,363)

Net current liabilities
  
 
 
(16,245,205)
 
 
(2,568,077)

Total assets less current liabilities
  
2,106,909
19,970,596

Creditors: amounts falling due after more than one year
 16 
(1,388)
(12,827,138)

Provisions for liabilities
  

Deferred tax
 18 
-
(1,043,682)

  
 
 
-
 
 
(1,043,682)

Net assets
  
2,105,521
6,099,776


Capital and reserves
  

Called up share capital 
 19 
2,242,432
2,242,432

Share premium account
 20 
3,370,189
3,370,189

Revaluation reserve
 20 
3,755,367
6,021,578

Profit and loss account
 20 
(7,262,467)
(5,534,423)

  
2,105,521
6,099,776


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 8 October 2024.




Paul Sarling
Director

The notes on pages 12 to 28 form part of these financial statements.
Page 10

 
FORMBY HALL GOLF CLUB LIMITED
 

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


Called up share capital
Share premium account
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£


At 1 January 2022
2,242,432
3,370,189
6,021,578
(4,538,973)
7,095,226


Comprehensive income for the year

Loss for the year
-
-
-
(995,450)
(995,450)



At 1 January 2023
2,242,432
3,370,189
6,021,578
(5,534,423)
6,099,776


Comprehensive income for the year

Loss for the year
-
-
-
(1,728,044)
(1,728,044)

Deficit on revaluation of freehold property
-
-
(3,957,940)
-
(3,957,940)

Deferred tax movement on freehold property revaluation
-
-
1,691,729
-
1,691,729


At 31 December 2023
2,242,432
3,370,189
3,755,367
(7,262,467)
2,105,521


The notes on pages 12 to 28 form part of these financial statements.

Page 11

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Formby Hall Golf Club Limited is a private company, limited by shares and incorporated in England and Wales.
The registered office is Formby Hall Golf Resort & Spa, Southport Old Road, Formby, Southport, L37 0AB.
The Company is registered in England and Wales, register number 02930961.

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).

 
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 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Formby Leisure Holdings Limited as at 31 December 2022 and these financial statements may be obtained from Companies House.

Page 12

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The Director has prepared their going concern assessment for the Company. During the year, the Company has been impacted by inflationary driven factors as seen in the wider industry as well as rising interest rates. 
The Director, when making this assessment of going concern, has prepared cash flow forecasts to December 2025 and considers it likely the Company will breach its covenants with it's principal lender within 12 months on signing these financial statements, given there have been breaches in the year to 31 December 2023. The Board recognises this and are currently in discussions with the principal lender concerning revising and/or restructuring certain of these covenants which the lender has agreed to review and consider. 
The Director is confident that they will reach a satisfactory conclusion to these ongoing discussions and as such consider it appropriate for the Company to adopt the going concern basis in preparing its financial statements, albeit it there is a material uncertainty. The accounts do not include any adjustments that may result from the entity being unable to continue as a going concern.

 
2.4

Revenue

Sale of goods
The company operates restaurants and bars at the hotel. Sales of goods are recognised when the restaurant, bars, spa, or golf club sell a product to a customer.
Sale of services
The company supplies conference and event facilities as well as hotel rooms to businesses and private customers. Sales of rooms and conference and event facilities are recognised on the dates those facilities are used. Deposits received in advance are not recognised as turnover until the date of the stay or event.

 
2.5

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.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Land and buildings are held under the revaluation model at fair value, less any accumulated depreciation subsequent to revaluation and subsequent impairment losses. Revaluations are made with sufficient regularity.

Page 13

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.5
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Land & buildings
-
50 years (with 100% residual value). Land is not depreciated.
Plant and machinery
-
10% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings / Office equipment
-
10% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

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 first in, first out basis.
At each reporting date, inventories are assessed for impairment. If inventory 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.

 
2.7

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.

 
2.8

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.

 
2.9

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.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic
Page 14

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.9
Financial instruments (continued)

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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

 
2.10

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.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Page 15

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.11
Current and deferred taxation (continued)

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.12

Leased assets: the Company as lessee

All leased assets are treated as operating leases. Their annual rentals are charged to profit or loss on a straight-line basis over the term of the lease. 

 
2.13

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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.14

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.15

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.

 
2.16

Borrowing costs

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

Page 16

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.19

Hedge accounting

The Company uses variable to fixed interest rate swaps to manage its exposure to fair value risk on its interest on its long term loan. These derivatives are measured at fair value at each reporting date.

Gains and losses on the hedging instruments and the hedged items are recognised in profit or loss for the year. When a hedged item is an unrecognised firm commitment, the cumulative hedging gain or loss on the hedged item is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss.

Page 17

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgements:

Determine whether leases entered into by the Company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Determine whether there are indicators of impairment of the Company’s tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
 
Other key sources of estimation uncertainty

Tangible fixed assets (see note 11)
 
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
The freehold land and buildings are held under the revaluation model at fair value. In assessing the fair value at the reporting date management are required to apply a degree of judgement and methods in assessing this include estimation uncertainty.

4.


Turnover

2023
2022
£
£

Hotel operation
4,984,553
5,044,958

Golf course operations
1,076,948
1,053,788

Spa operations
1,531,453
1,449,083

Other
86,492
6,982

7,679,446
7,554,811


All turnover arose within the United Kingdom.

Page 18

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
337,040
348,628

Operating lease rentals - Plant & machinery
82,217
42,225

Fees payable for the audit of the company's annual accounts.
26,500
24,000


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
26,500
24,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Interest receivable

2023
2022
£
£


Other interest receivable
75,979
3,284

75,979
3,284


8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
1,119,775
599,792

1,119,775
599,792

Page 19

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Taxation


2023
2022
£
£


Current tax on profits for the year
-
-

Adjustments in respect of previous periods
-
-


-
-

Deferred tax


Origination and reversal of timing differences
648,047
(188,268)

Total deferred tax
648,047
(188,268)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(1,079,997)
(1,183,718)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
(254,015)
(224,906)

Effects of:


Income not taxable for tax purposes
(40,850)
(604)

Expenses not deductible for tax purposes
68,973
43,165

Fixed asset differences
(73,700)
39,695

Chargeable gains
760,800
-

Remeasurement of deferred tax for changes in tax rates
(80,130)
(45,047)

Dividends from UK companies
-
(571)

Movement in deferred tax not recognised
266,969
-

Total tax charge for the year
648,047
(188,268)
Page 20

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
9.Taxation (continued)


Factors that may affect future tax charges

The rate of corporation tax will increase to 25% from April 2023 applying to profits over £250,000.
The Finance Act 2021 introduces a small profits rate (SPR) of 19% for companies with profits of £50,000 or less from April 2023. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate. The lower and upper limits will be proportionately reduced for short accounting periods and where there are associated companies.


10.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
3,050,745
3,130,138

Social security costs
188,690
207,735

Cost of defined contribution scheme
43,830
43,350

3,283,265
3,381,223


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


        2023
        2022
            No.
            No.







Hotel staff
180
173



Administration
21
21

201
194

The Company has no employees, other than the directors, who did not receive any remuneration. Total directors remuneration for the year was £NIL (2022: £NIL). 

Page 21

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2023
19,260,863
1,739,606
8,000
5,564,900
550,817
27,124,186


Additions
-
102,083
-
22,362
8,385
132,830


Disposals
-
-
-
-
(24,409)
(24,409)


Revaluations
(3,957,940)
-
-
-
-
(3,957,940)



At 31 December 2023

15,302,923
1,841,689
8,000
5,587,262
534,793
23,274,667



Depreciation


At 1 January 2023
-
1,227,692
949
3,138,061
218,811
4,585,513


Charge for the year on owned assets
-
54,514
1,575
244,464
36,487
337,040



At 31 December 2023

-
1,282,206
2,524
3,382,525
255,298
4,922,553



Net book value



At 31 December 2023
15,302,923
559,483
5,476
2,204,737
279,495
18,352,114



At 31 December 2022
19,260,863
511,914
7,052
2,426,839
332,006
22,538,674

To establish the fair value of freehold land and buildings the Directors are required to assess the value of the freehold land and buildings at each reporting date. The Directors valuation as at 31 December 2023 is based on a value in use calculation which uses forecast data and a discount factor to calculate the net present value of the value in use of the freehold property. This has resulted in a revaluation downwards of £3,957,940. As there is a surplus in the revaluation reserve, this revaluation loss has been recognised in other comprehensive income for the year.

Page 22

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Stocks

2023
2022
£
£

Consumables held for resale
134,433
140,016


There are no material differences between the replacement costs of stocks and the amounts stated above.


13.


Debtors

2023
2022
£
£

Trade debtors
73,162
77,560

Other debtors
147,146
125,064

Prepayments and accrued income
220,962
223,279

Financial instruments
105,054
-

546,324
425,903


All amounts fall due for repayment within one year.


14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
410,710
641,367

410,710
641,367


Page 23

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
13,689,435
86,250

Trade creditors
377,159
331,487

Amounts owed to group undertakings
1,513,578
1,555,570

Corporation tax
237
237

Other taxation and social security
325,460
224,782

Other creditors
598,790
601,875

Accruals and deferred income
832,013
975,162

17,336,672
3,775,363



16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Debentures loans
1,388
1,388

Bank loans
-
12,825,750

1,388
12,827,138


Page 24

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
13,689,435
86,250

Amounts falling due 1-2 years

Bank loans
-
345,000

Debenture loans
1,388
1,388

Amounts falling due 2-5 years

Bank loans
-
12,480,750


13,690,823
12,913,388


At the year end the Company held a loan with a balance of £13,689,435 owing to Leumi (net of arrangement fee and interest reserve). The loan is repayable in equal quarterly installments of £82,500 starting one year from drawdown date (29 December 2022), with the final outstanding balance repayable in full of 29 December 2027. Interest is charged at SONIA plus a margin of 3.5% per annum. The loan is stated net of the arrangement fee £110,400 (2022: £138,000) and interest reserve of £165 (2022: £750,000)
The bank loan is secured against the assets of the Company.
During the year the covenants on the bank loan were breached. Given this represents an event of default, the loan became repayable on demand. As such, the bank loan has been classified as due within one year. 


18.


Deferred taxation




2023
2022


£

£



At 1 January 2023
(1,043,682)
(1,231,950)


Deferred tax (credit)/charge in the statement of comprehensive income for the period to profit or loss
(648,047)
188,268


Deferred tax (credit)/charge in the statement of other comprehensive income for the period
1,691,729
-



At 31 December 2023
-
(1,043,682)

Page 25

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
18.Deferred taxation (continued)

The deferred taxation balance is made up as follows:

2023
2022
£
£


Fixed asset timing differences
-
(574,846)

Short term timing differences
-
2,037

Capital gains /(losses)
-
(1,691,729)

Losses and other deductions
-
1,220,856

-
(1,043,682)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2,241,000 (2022 - 2,241,000) Ordinary shares shares of £1.000 each
2,241,000
2,241,000
8,890 (2022 - 8,890) Ordinary non-voting shares shares of £0.100 each
889
889
543,000 (2022 - 543,000) Prefrence shares shares of £0.001 each
543
543

2,242,432

2,242,432

The ordinary shares and preference shares carry the right to receive notice of and participate in general meetings and the right of one vote per share.
Ordinary shares carry the right to receive ten times the dividend receivable by each non-voting ordinary share.
The non-voting ordinary shares carry no right to receive notice of general meetings and on the winding up of the company or reduction in capital no regard shall be given to any premium paid in respect of the non- voting shares.
On a winding up of the company the assets and liabilities of the Company after discharging all debts and liabilities shall be divided amongst the holders of the preference shares, the ordinary shares and the non- voting shares in accordance with the Articles of Association (Article 81 Capital).


Page 26

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Reserves

Revaluation reserve

The revaluation reserve as at 31 December 2023 is £3,755,367 (2022: £6,021,578) which relates to the revaluation of the property and any associated deferred tax charge. Any movement in this reserve is recognised in other comprehensive income and within the statement of changes in equity. The reserve, which is not distributable, reflects unrealised gains on revaluation.

Profit and loss account

The profit and loss reserve represents cumulative profit or losses, net of dividends paid and other adjustments.


21.


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 independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £43,830 (2022: £43,350). Contributions totaling £15,569 (2022: £8,151) were payable to the fund at the reporting date and are included in creditors.


22.


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
-
8,976

-
8,976


23.


Related party transactions

The Company has taken the exemption under Section 33.1A of FRS 102 not to disclose transactions with other wholly owned group companies on the grounds that 100% of the voting rights in the Company are controlled within that group.
Key management personnel include all directors and a number of senior managers and consultants of the company who together have authority and responsibility for planning, directing and controlling the activities of the group. The total compensation paid to key management personnel for services provided to the company was £NIL (2022- £NIL).

Page 27

 
FORMBY HALL GOLF CLUB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Post balance sheet events

On 23 April 2024, the secured shares were charged in favour of a Lender by way of a fixed charge with payment to this Lender of all liabilities and all other sums. This Lender subsequently appointed Receivers over the shares in the Company. 
There has been no change to the day to day management, or operations, of the Company since the change in control. 


25.


Controlling party

The immediate parent undertaking of the Company is Formby Leisure Holdings Limited, a Company registered in the UK. The ultimate parent undertaking is HIG Global Capital Partners GP Ltd, a Company incorporated in the Cayman Islands.
At the balance sheet date, the Directors considered there to be no ultimate controlling party. At the date of signing these financial statements, the controlling party is considered to be the Lender. 

Page 28