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COMPANY REGISTRATION NUMBER: NI000062
The Cliftonville Golf Club Limited
Filleted Financial Statements
31 December 2023
The Cliftonville Golf Club Limited
Financial Statements
Year ended 31 December 2023
Contents
Pages
Statement of financial position
1
Notes to the financial statements
2 to 9
The Cliftonville Golf Club Limited
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible assets
5
737,764
722,803
Current assets
Stocks
6
13,490
11,080
Debtors
7
17,021
6,349
Cash at bank and in hand
11,748
11,507
--------
--------
42,259
28,936
Creditors: amounts falling due within one year
8
( 275,637)
( 225,901)
---------
---------
Net current liabilities
( 233,378)
( 196,965)
---------
---------
Total assets less current liabilities
504,386
525,838
Creditors: amounts falling due after more than one year
9
( 50,453)
( 65,478)
Provisions
Taxation including deferred tax
( 104,701)
( 104,701)
---------
---------
Net assets
349,232
355,659
---------
---------
Capital and reserves
Called up share capital
187
181
Share premium account
9,293
9,119
Capital redemption reserve
3,421
3,421
Profit and loss account
336,331
342,938
---------
---------
Shareholders funds
349,232
355,659
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the board of directors and authorised for issue on 24 October 2024 , and are signed on behalf of the board by:
H.M-I. Daly
J.J. Duddy
Director
Director
Company registration number: NI000062
The Cliftonville Golf Club Limited
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is c/o Muir & Addy, 427 Holywood Road, Belfast, BT4 2LT.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There is a material uncertainty about the company's ability to continue as a going concern. The relevant events and conditions are detailed in note 13 to the financial statements. The financial statements are prepared on a going concern basis.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Going concern In their assessment of the suitability of the preparation of the accounts on a going concern basis, the directors exercise judgement in considering the relevant events and conditions. These include those which have already occurred, or which exist at the time they make their assessment, and also those expected to occur or exist in the future. By their very nature, those future events or conditions are uncertain, and that uncertainty increases the longer the future period that the directors consider. The directors include in their consideration forecasts of the future trading performance of the company and the availability of cash, both internally generated and from financing arrangements. These may be prepared on the basis of the information available at the time, but will include assumptions and estimates regarding future events. In particular, the directors assume the receipt of Members' Levy funds in 2024, the continuing availability of existing loan funds from members and future additional funds through a special purpose vehicle, and the successful conclusion of negotiations for the sale of a parcel of land. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Depreciation Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset. The directors must therefore estimate the pattern of use of the asset in choosing the most appropriate method of depreciation, the expected durability of the asset in assessing its useful life, and the availability of a market in estimating the residual value. Other factors, such as technological or regulatory changes, or other indicators of impairment, could affect the assumptions in respect of each asset.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. Deferred tax is recognised in respect of timing differences arising on assets carried at valuation. Where revaluation adjustments are recognised in profit or loss, deferred tax is also recognised in profit or loss. Where revaluation adjustments are recognised in other comprehensive income, deferred tax is also recognised in other comprehensive income.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Clubhouse and course buildings
-
4% Straight Line
Plant and machinery
-
25% Reducing Balance or 20% Straight Line
Fixtures and fittings
-
25% Reducing Balance or 25% Straight Line
No depreciation is charged on freehold property.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 14 (2022: 14 ).
5. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
892,696
199,766
111,279
1,203,741
Additions
26,887
2,140
29,027
---------
---------
---------
------------
At 31 December 2023
892,696
226,653
113,419
1,232,768
---------
---------
---------
------------
Depreciation
At 1 January 2023
196,868
175,554
108,516
480,938
Charge for the year
12,840
1,226
14,066
---------
---------
---------
------------
At 31 December 2023
196,868
188,394
109,742
495,004
---------
---------
---------
------------
Carrying amount
At 31 December 2023
695,828
38,259
3,677
737,764
---------
---------
---------
------------
At 31 December 2022
695,828
24,212
2,763
722,803
---------
---------
---------
------------
6. Stocks
2023
2022
£
£
Finished goods and goods for resale
13,490
11,080
--------
--------
7. Debtors
2023
2022
£
£
Trade debtors
14,774
2,707
Other debtors
2,247
3,642
--------
-------
17,021
6,349
--------
-------
8. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
32,690
19,676
Trade creditors
39,925
58,752
Corporation tax
1,332
869
Social security and other taxes
32,528
19,856
Other creditors
169,162
126,748
---------
---------
275,637
225,901
---------
---------
Bank loans and overdrafts totalling £32,690 (2022 - £19,676) are secured by a legal mortgage over land and buildings and fixed and floating charges over other company assets.
9. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
31,718
51,961
Other creditors
18,735
13,517
--------
--------
50,453
65,478
--------
--------
Bank loans totalling £31,718 (2022 - £51,961) are secured by a legal mortgage over land and buildings and fixed and floating charges over other company assets.
The value payable by instalments after more than five years from the balance sheet date is £8,783 (2022 - £14,749).
10. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023
2022
£
£
Recognised in other operating income:
Government grants recognised directly in income
17,914
----
--------
Revenue grants received include the Retail, Tourism, Hospitality and Leisure grant from the Department of Finance (Northern Ireland) £nil (2022 - £10,000), and other support grants from Invest NI £nil (2022 - £7,914). A loan of £50,000 under the Coronavirus Business Interruption Loan Scheme is supported by a government-backed guarantee from the Department for Business, Energy and Industrial Strategy. They also covered the first 12 months of interest payments and any lender-levied fees, which applied to June 2021. The balance of the loan as at 31 December 2023 is £37,119.
11. Going concern
The company has incurred losses for a number of years and in the current year the loss before taxation is £5,209. At 31 December 2023 the company had a revenue reserve of £336,331. However, there is a significant shortfall in working capital, and this is reflected in an increase of net current liabilities from £196,695 as at 31 December 2022 to £233,378.
The directors recognise that the continuation of losses year upon year needs to be addressed to secure the future of the company and they have been working on a "Club Development Plan". Under this Plan, a parcel of land will be sold, with sale proceeds invested in significant upgrade and improvement of the golf course and clubhouse. A proportion of the sale proceeds will be retained to provide cash-flow security and the overall Plan is aimed at securing the long-term future of the company.
- Shareholders endorsed the first phase of the Club Development Plan, which included the approval of a preferred bidder (Radius Housing) for a parcel of land, at an EGM on 30 October 2023.
- A Memorandum of Understanding has been signed with the preferred developer Radius Housing. The directors anticipate that this sale will be completed, but it is noted that this is subject to satisfactory conclusion of negotiations with developers and other project partners and the achievement of planning permission. The directors initially envisioned completion of the Plan within the next 3 to 5 years but this has been impacted by a lack of NI Water sewerage capacity in North Belfast . Discussions are underway with Radius Housing to lobby MLAs on this matter.
- Discussions are also underway regarding the potential option of using the Holy Family Parish Hall on the Cavehill Road as a clubhouse. For this option to be fulfilled the move needs to be economically viable and approved by our shareholders.
- A special purpose vehicle called Friends of Cliftonville Limited (FoC) has been set up to allow members to loan monies to the CGC and which will be used primarily for Club Development Plan activities. Existing loans and director loans have been moved into FoC. Monies loaned by members (including existing member loans) are secured against the golf course land and represent a total capital of £95,634 as at 31 August 2024 (of which £57,150 is new money). Another £20,000 has been pledge d to FoC.
The directors believe that the Club Development Plan will result in a much-improved experience for members and visitors alike and will create substantial revenue increases in all various income streams. With increased revenue, and anticipated cost savings from an improved clubhouse, it is the company's plan to return to a sustainable financial footing in the future.
Unfavourable economic conditions and the cost of living crisis continued to result in a reduction in the number of playing members renewing their subscriptions in 2023 at a time when the company's costs were increasing across all categories. These factors, combined with the cumulative effect of annual losses and payment of creditors, resulted in a deterioration in the company's cash position in the prior reporting period. The member's levy introduced in 2022 finishes in 2024. Member's annual subscriptions will see a significant rise in 2025.
Several other initiatives have been developed to improve our financial position both short and long term:
- A Marketing Plan has been developed with the primary purpose of increasing membership.
- The company signed up with NICVA so as to seek other ways to generate income. This has resulted in being granted consultancy from SportEd.
- Business support consultancy has also been granted by Go-Succeed towards improved marketing and membership growth.
- The finance team are planning to migrate to an alternative accounting package which will provide better and more up to date financial performance information.
In the opinion of the directors, given these events and conditions, there is a material uncertainty
as to the future viability of the company. Without the increase in annual subscriptions and membership growth, the directors forecast further significant losses and deterioration of cash-flows. They consider that the company could not continue to trade without the successful receipt of these funds in the shorter term, and the completion of the land sale and realisation of club development in the longer term. The directors assume the continued availability of bank loan facilities and other loans and ongoing support from members through annual subscriptions and bar revenues. Based on the actions taken, the directors are confident of securing the financial stability of the company and consider it appropriate to continue to prepare the financial statements on a going concern basis.
12. Ethical standards
In common with many other entities of our size and nature, we use our auditors to prepare and submit returns to the tax authorities and to assist with the preparation of the financial statements.
13. Summary audit opinion
The auditor's report dated 24 October 2024 was unqualified .
The senior statutory auditor was Mr Paul Leathem FCA , for and on behalf of Muir & Addy .
14. Directors' advances, credits and guarantees
As at 31 December 2023 the company owed £21,229 (2022 - £11,600) to the directors in respect of loans to cover short-term working capital requirements.