Everbright Lodge Ltd |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2023 |
Everbright Lodge Ltd |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2023 |
Everbright Lodge Ltd (Registered number: 09622667) |
Contents of the Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
Everbright Lodge Ltd |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
3rd Floor |
5 Temple Square |
Temple Street |
Liverpool |
Merseyside |
L2 5RH |
Everbright Lodge Ltd (Registered number: 09622667) |
Strategic Report |
for the Year Ended 30 June 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The company's principal activity during the year continued to be the operation of hotels. |
The company used key financial and performance indicators, such as turnover and gross profit margin, alongside occupancy levels and average room rates, to evaluate hotel performance. |
The year saw trade continue at a similar capacity, with both sites operating fully, leading to stable turnover and profitability levels.This trade has continued beyond the year end and the net asset position is expected to remain into 2024. |
Following this year-end, the company is also reviewing the freehold property, which is expected to support another higher valuation. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors regularly assess the risks facing the business. The principal risks and uncertainties for the company are broadly categorised as market-based risks, legislative risks, and financing risks: |
Market Risks |
The company operates in a highly competitive environment, and the directors continually assess customer needs and preferences, along with the activities of competitors, to ensure the best possible customer experience. |
Legislative Risks |
The company’s operations are subject to regulatory requirements, and the directors closely monitor compliance to ensure that the highest standards of hygiene and safety are maintained. |
Financing Risks |
The company must maintain adequate levels of working capital to manage ongoing operations effectively. This is closely monitored through regular financial reviews. |
EMPLOYEES |
The group continues to adhere to the Health & Safety at Work Act, ensuring the welfare of its employees remains a priority. |
The group fully considers applications for employment from individuals with disabilities, provided that the requirements of the role can be effectively met by a disabled person. |
POLICY ON PAYMENTS TO CREDITORS |
Creditors are paid in accordance with the agreed terms of business established with suppliers. |
Due to the nature of the company’s operations and the terms agreed with suppliers, the directors have not provided an average creditor days figure, as it is not deemed beneficial. |
ON BEHALF OF THE BOARD: |
25 October 2024 |
Everbright Lodge Ltd (Registered number: 09622667) |
Report of the Directors |
for the Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the operation of hotels. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
The group utilises conventional working capital to finance day-to-day operations, and the figures in the accounts represent the absolute values of amounts recoverable and payable. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Everbright Lodge Ltd (Registered number: 09622667) |
Report of the Directors |
for the Year Ended 30 June 2023 |
AUDITORS |
The auditors, Mitchell Charlesworth (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Everbright Lodge Ltd |
Opinion |
We have audited the financial statements of Everbright Lodge Ltd (the 'company') for the year ended 30 June 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
_ |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2023 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Everbright Lodge Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Everbright Lodge Ltd |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance; |
- the company's own assessment of the risks that irregularities may occur either as a result of fraud or error; |
- the results of our enquiries of management of their own identification of and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: |
(i) The presentation of the Profit and Loss Account, (ii) the accounting policy for revenue recognition and completeness of income (iii) related party transactions. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
Audit response to risks identified |
Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
Report of the Independent Auditors to the Members of |
Everbright Lodge Ltd |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
3rd Floor |
5 Temple Square |
Temple Street |
Liverpool |
Merseyside |
L2 5RH |
Everbright Lodge Ltd (Registered number: 09622667) |
Income Statement |
for the Year Ended 30 June 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
392,815 | 465,719 |
Other operating income |
OPERATING PROFIT | 6 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Everbright Lodge Ltd (Registered number: 09622667) |
Other Comprehensive Income |
for the Year Ended 30 June 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation in year |
Income tax relating to other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Everbright Lodge Ltd (Registered number: 09622667) |
Balance Sheet |
30 June 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 16 | ( |
) |
NET ASSETS/(LIABILITIES) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Revaluation reserve | 18 |
Retained earnings | 18 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Everbright Lodge Ltd (Registered number: 09622667) |
Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 July 2021 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2023 | ( |
) |
Everbright Lodge Ltd (Registered number: 09622667) |
Cash Flow Statement |
for the Year Ended 30 June 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (55,800 | ) | - |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
369,344 |
Cash and cash equivalents at end of year |
2 |
435,407 |
444,364 |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Cash Flow Statement |
for the Year Ended 30 June 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 252,907 | 166,731 |
581,922 | 622,843 |
Decrease/(increase) in stocks | ( |
) |
Decrease in trade and other debtors |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 435,407 | 444,364 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 444,364 | 369,344 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 444,364 | (8,957 | ) | 435,407 |
444,364 | ( |
) | 435,407 |
Debt |
Debts falling due within 1 year | (228,974 | ) | 76,391 | (152,583 | ) |
Debts falling due after 1 year | (2,307,811 | ) | 76,359 | (2,231,452 | ) |
(2,536,785 | ) | 152,750 | (2,384,035 | ) |
Total | (2,092,421 | ) | 143,793 | (1,948,628 | ) |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Everbright Lodge Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover derived is from hotel operations and arose wholly in the United Kingdom. Turnover is recognised when services are rendered. The turnover of the hotel is primarily derived from the rentals of rooms, concerts and banqueting, food and beverage sales. |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The company recognises revenue when (a) the amount of revenue can be measured reliably and (b) it is probable that the future economic benefit will flow to the company. |
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 provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property - 2% straight line |
Improvements to property - 10% straight line |
Fixtures and fittings - 25% on reducing balance |
Government grants |
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. |
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
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 and loans from fellow group companies 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. Although there is a net current liability position at year end, the directors are confident that the current assets plus the cash generated from the trade of the business is sufficient to cover the liabilities as they fall due. |
Post Covid the restrictions that impacted the comparative results was lifted and the company has been returning to more normal levels of trade, with occupancy rates on the up. The directors are confident of ongoing profits. |
The financial statements have been prepared on a going concern basis due to the director's continued funding and bank facility being sufficient to support the company's cash flow going forward. |
3. | CRITICAL ACCOUNTING 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. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Operations |
2023 | 2022 |
£ | £ |
Directors' remuneration |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Grant income |
7. | AUDITORS' REMUNERATION |
2023 | 2022 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
6,140 |
4,850 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest |
Other loan interest |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Deferred tax | ( |
) |
Tax on profit | ( |
) |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Unrecognised deferred tax assets | 59,178 | (140,698 | ) |
Change in rate of deferred tax | - | 17,687 |
Total tax charge/(credit) | 110,286 | (67,000 | ) |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation in year | (701,064 | ) | 2,103,194 |
10. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
Freehold | to | and |
property | property | fittings | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 July 2022 |
Additions |
Revaluations |
Reclassification/transfer | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Revaluation adjustments | ( |
) | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Land and buildings with a carrying amount of £ 4.67M were revalued at 8 May 2024 by Graham and Sibbald, independent valuers not connected with the company on the basis of market value. The directors consider this reflected property and market conditions as at 30 June 2023 and accordingly an adjustment has been made to record this valuation in the financial statements. |
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, including improvements to property the carrying amounts would have been approximately £5,488,990 (2022 - £5,385,774), being cost £6,037,750 (2022 - £5,791,674) and depreciation £548,760 (2022 - £405,900). |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Deferred tax asset |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Trade creditors |
Social security and other taxes |
Pension creditor | 4,554 | 4,307 |
VAT | 200,324 | 103,858 |
Other creditors |
Directors' current accounts | 1,465,000 | - |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
Directors' loan accounts | 1,554,550 | 3,075,352 |
Included within bank loans and overdrafts are secured creditors totalling £2,384,035 (2022 of £2,536,785). Further information is noted under loans and overdrafts below. |
Interest is charged on the outstanding Director's loan, further information in relation to this is noted under Director's transactions. |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans due more than five |
years by instalments | 2,231,452 | 2,307,811 |
2,231,452 | 2,307,811 |
Included within bank loans is a loan from Allied Irish Bank of £2,039,591 (2022 - £2,117,323) which is repayable by instalments. It is secured by way of fixed and floating charges against all the property and assets of the company. |
Also included within bank loans is a CBILS loan from Welsh Development Bank of £128,631 (2022 - £164,715) and a CBILs loan from Allica Bank of £215,813 (2022 - £254,747). |
16. | PROVISIONS FOR LIABILITIES |
2023 |
£ |
Deferred tax | 744,350 |
Deferred |
tax |
£ |
Balance at 1 July 2022 | ( |
) |
Provided during year |
Balance at 30 June 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 1,660 | 1,660 |
18. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 July 2022 | ( |
) | (314,516 | ) |
Profit for the year |
Revaluation reserve |
At 30 June 2023 | ( |
) | 1,818,300 |
Everbright Lodge Ltd (Registered number: 09622667) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
19. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. |
20. | DIRECTOR'S TRANSACTIONS |
The amount of money invested by Mr Siyuan Cao in previous years as a director's loan was £200,000. |
The amount of money invested by Mrs Dan Li in previous years as a director's loan was £200,000. |
£20,000 has been repaid this year meaning the balance at 30 June 2023 was £180,000. |
The amount of money invested by Mrs Jia Liin previous years as a director's loan was £200,000. |
The amount of money invested by Mr Kequ Liu in previous years as a director's loan was £200,000. |
The amount of money invested by Mrs Cheng Ou in previous years as a director's loan was £200,000. |
The amount of money invested by Ms XinTianin previous years as a director's loan was £200,000. |
The amount of money Invested by Mrs Yang Wang and Mrs Yiblng Guan in previous years as a directors' loan was |
£200,000. |
The amount of money invested by Ms Zhenyan Wangin previous years as a director's loan was £200,000. |
The amount of money invested by Ms Bingqian Zhao in previous years as a director's loan was £200,000. |
The amount of money invested by Ms Yongmei Zhouin previous years as a director's loan was £200,000. |
The amount of money invested by Ms Fan Yang in previous years as a director's loan was £200,000. |
The amount of money invested by Mrs Yanjun Zhou in previous years as a director's loan was £200,000. |
The amount of money invested by Ms Zhuo Zhang in previous years as a director's loan was £200,000. |
The amount of money invested by Mrs Juan Li in previous years as a director's loan was £100,000. |
The amount of money invested by Ms Bao Fangin previous years as a director's loan was £200,000. |
The above amounts are Included within other creditors falling due in more than one year. |
The loans are repayable on demand, and incur interest at a rate of 3.6% per annum. |