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COMPANY REGISTRATION NUMBER: 10256898
Vine Kenwood Limited
Financial Statements
31 March 2024
Vine Kenwood Limited
Financial Statements
Year ended 31 March 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2
Directors' report
3 to 4
Independent auditor's report to the members
5 to 8
Consolidated statement of comprehensive income
9
Consolidated statement of financial position
10
Company statement of financial position
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Notes to the financial statements
15 to 26
Vine Kenwood Limited
Officers and Professional Advisers
The board of directors
Mr G Dyke
Mr N Burgin (Resigned 31 October 2024)
Ms S Howes
Mr G Davies
Registered office
C/O Director of Finance
Mosborough Hall Hotel
High Street
Mosborough
Sheffield
S20 5EA
Auditor
Hebblethwaites
Chartered accountants & statutory auditor
2 Westbrook Court
Sharrow Vale Road
Sheffield
S11 8YZ
Vine Kenwood Limited
Strategic Report
Year ended 31 March 2024
The legacy impact of the global COVID-19 pandemic has now declined to a large extent, if with subsequent global macro-economic issues creating new challenges which have impacted the hospitality sector to a very significant extent and certainly with greater challenges than the majority of other market sectors. Indeed, some of the pent up post pandemic demand which served to enhance trading activities in recent years has subsided with revenue reverting to pre-pandemic levels. Against this background, the 2023 year reflected further sales growth in the group of £654K or 19% to a record level, if against a scenario of increasing costs in a challenging economic climate. Whilst inevitably incorporating an element of price inflation, the latest year, ended 31 March 2024, has seen a comparatively small fall in headline revenue, if only £208K or 5%, but again with significant cost challenges in terms of the market costs of employment and in food and beverage supplies. The key performance indicators were as follows: Group turnover fell by £208K or 5% year on year The gross percentage margin fell by 6.88% from 40.82% to 33.94%, this consequent on core cost increases The group recorded an operating loss for the year of £918K as against the prior year equivalent of £620K Finance costs increased further on the back of market pricing giving rise to a total loss for the year, both pre and post tax, of £1.304 million as compared with the prior year £948K. The group retains a strong market presence in the market, in particular as a function venue, where demand continues to be at a relatively high level. The directors continue to monitor the cash flow and funding position of the group, with support as necessary being provided by the company bankers, directors and related parties. The funding position is kept under constant review, with the view being that the inherent support will remain in place for the foreseeable future. The group continues to meet its' debt servicing obligations given the funding structure.
This report was approved by the board of directors on 2 December 2024 and signed on behalf of the board by:
Mr G Davies
Director
Registered office:
C/O Director of Finance
Mosborough Hall Hotel
High Street
Mosborough
Sheffield
S20 5EA
Vine Kenwood Limited
Directors' Report
Year ended 31 March 2024
The directors present their report and the financial statements of the group for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
Mr G Dyke
Mr N Burgin
Ms S Howes
Mr G Davies
Dividends
The directors do not recommend the payment of a dividend.
Financial instruments
The group's principal financial instruments comprise bank facilities, trade debtors, trade creditors and director loans. The main purpose of these instruments are to provide sufficient funds to finance the group operations. Given the nature of the financial instruments used by the group there is no significant exposure to price risk.
The group approach to managing other risks applicable to the financial instruments concerned is as set out below.
In respect of bank facilities, the liquidity risk is managed by maintaining a balance as between the continuity of funding and flexibility through the use of day to day bank facilities and medium term bank loans.
Trade debtors are managed in respect of credit and cash flow risk by policies relating to the credit offered to customers and related parties and the regular monitoring of amounts outstanding for both time and credit limits.
Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.
This report was approved by the board of directors on 2 December 2024 and signed on behalf of the board by:
Mr G Davies
Director
Registered office:
C/O Director of Finance
Mosborough Hall Hotel
High Street
Mosborough
Sheffield
S20 5EA
Vine Kenwood Limited
Independent Auditor's Report to the Members of Vine Kenwood Limited
Year ended 31 March 2024
Opinion
We have audited the financial statements of Vine Kenwood Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, 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 FRS 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 group's and of the parent company's affairs as at 31 March 2024 and of the group's loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group 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
We draw your attention to Note 3 in the financial statements, which indicates that a material uncertainty exists, that may cast an element of doubt on the company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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 group and the parent 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company 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, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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: 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, including the identification of related party transactions, and matters which could potentially impact on the company's continuation as a going concern; - results of our enquiries of management 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; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; - the matters discussed among the audit engagement team, including 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 relation to revenue recognition. 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 frameworks 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, UK Corporate Governance Code and local tax legislation. 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. 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. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Throssell FCA
(Senior Statutory Auditor)
For and on behalf of
Hebblethwaites
Chartered accountants & statutory auditor
2 Westbrook Court
Sharrow Vale Road
Sheffield
S11 8YZ
3 December 2024
Vine Kenwood Limited
Consolidated Statement of Comprehensive Income
Year ended 31 March 2024
2024
2023
Note
£
£
Turnover
4
3,903,004
4,110,561
Cost of sales
( 2,578,395)
( 2,432,533)
------------
------------
Gross profit
1,324,609
1,678,028
Administrative expenses
( 2,342,635)
( 2,297,999)
Other operating income
5
100,000
------------
------------
Operating loss
6
( 918,026)
( 619,971)
Other interest receivable and similar income
9
806
268
Interest payable and similar expenses
10
( 386,331)
( 328,176)
------------
------------
Loss before taxation
( 1,303,551)
( 947,879)
Tax on loss
------------
---------
Loss for the financial year
( 1,303,551)
( 947,879)
------------
---------
Revaluation of tangible assets
( 900,000)
------------
---------
Total comprehensive income for the year
( 2,203,551)
( 947,879)
------------
---------
All the activities of the group are from continuing operations.
Vine Kenwood Limited
Consolidated Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Intangible assets
11
1,362,197
1,952,697
Tangible assets
12
4,532,023
5,433,533
------------
------------
5,894,220
7,386,230
Current assets
Stocks
14
33,059
26,662
Debtors
15
495,605
549,669
Cash at bank and in hand
585,539
561,931
------------
------------
1,114,203
1,138,262
Creditors: amounts falling due within one year
17
4,918,148
4,196,349
------------
------------
Net current liabilities
3,803,945
3,058,087
------------
------------
Total assets less current liabilities
2,090,275
4,328,143
Creditors: amounts falling due after more than one year
18
5,852,397
5,886,714
------------
------------
Net liabilities
( 3,762,122)
( 1,558,571)
------------
------------
Capital and reserves
Called up share capital
22
100
100
Revaluation reserve
23
954,708
1,854,708
Profit and loss account
23
( 4,716,930)
( 3,413,379)
------------
------------
Shareholders deficit
( 3,762,122)
( 1,558,571)
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 2 December 2024 , and are signed on behalf of the board by:
Mr G Davies
Director
Company registration number: 10256898
Vine Kenwood Limited
Company Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Investments
13
1
1
Current assets
Debtors
15
999,999
999,999
Cash at bank and in hand
100
100
------------
------------
1,000,099
1,000,099
------------
------------
Net current assets
1,000,099
1,000,099
------------
------------
Total assets less current liabilities
1,000,100
1,000,100
Creditors: amounts falling due after more than one year
18
1,000,000
1,000,000
------------
------------
Net assets
100
100
------------
------------
Capital and reserves
Called up share capital
22
100
100
----
----
Shareholders funds
100
100
----
----
The profit for the financial year of the parent company was £Nil (2023: £Nil).
These financial statements were approved by the board of directors and authorised for issue on 2 December 2024 , and are signed on behalf of the board by:
Mr G Davies
Director
Company registration number: 10256898
Vine Kenwood Limited
Consolidated Statement of Changes in Equity
Year ended 31 March 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 April 2022
100
1,854,708
( 2,465,500)
( 610,692)
Loss for the year
( 947,879)
( 947,879)
----
------------
------------
---------
Total comprehensive income for the year
( 947,879)
( 947,879)
At 31 March 2023
100
1,854,708
( 3,413,379)
( 1,558,571)
Loss for the year
( 1,303,551)
( 1,303,551)
Other comprehensive income for the year:
Revaluation of tangible assets
12
( 900,000)
( 900,000)
----
------------
------------
------------
Total comprehensive income for the year
( 900,000)
( 1,303,551)
( 2,203,551)
----
------------
------------
------------
At 31 March 2024
100
954,708
( 4,716,930)
( 3,762,122)
----
------------
------------
------------
Vine Kenwood Limited
Company Statement of Changes in Equity
Year ended 31 March 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 April 2022
100
100
Profit for the year
At 31 March 2023
100
100
Profit for the year
----
----
----
At 31 March 2024
100
100
----
----
----
Vine Kenwood Limited
Consolidated Statement of Cash Flows
Year ended 31 March 2024
2024
2023
Note
£
£
Cash flows from operating activities
Loss for the financial year
( 1,303,551)
( 947,879)
Adjustments for:
Depreciation of tangible assets
122,673
188,879
Amortisation of intangible assets
590,500
590,500
Other interest receivable and similar income
( 806)
( 268)
Interest payable and similar expenses
386,331
328,176
Gains on disposal of tangible assets
( 1,294)
Accrued income
( 117,917)
( 140,251)
Changes in:
Stocks
( 6,397)
( 1,117)
Trade and other debtors
54,064
( 29,139)
Trade and other creditors
850,394
469,251
------------
---------
Cash generated from operations
573,997
458,152
Interest paid
( 303,831)
( 164,324)
Interest received
806
268
---------
---------
Net cash from operating activities
270,972
294,096
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 121,163)
( 161,491)
Proceeds from sale of tangible assets
1,294
58,658
---------
---------
Net cash used in investing activities
( 119,869)
( 102,833)
---------
---------
Cash flows from financing activities
Proceeds from borrowings
( 113,752)
( 113,752)
Payments of finance lease liabilities
( 102,500)
( 102,500)
Payments of hire purchase liabilities
( 300)
( 3,604)
---------
---------
Net cash used in financing activities
( 216,552)
( 219,856)
---------
---------
Net decrease in cash and cash equivalents
( 65,449)
( 28,593)
Cash and cash equivalents at beginning of year
561,931
590,524
---------
---------
Cash and cash equivalents at end of year
16
496,482
561,931
---------
---------
Vine Kenwood Limited
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is C/O Director of Finance, Mosborough Hall Hotel, High Street, Mosborough, Sheffield, S20 5EA.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
Management have determined that a material uncertainty exists which may cast doubt on the company's ability to continue as a going concern. Given the then market conditions in the post pandemic era, a valuation of the group property was undertaken in March 2022 which resulted in a reduction in the value of the long leasehold property assets in the subsequent financial statements of the group. In order to update the position and to satisfy the requirements of the group bankers in relation to the group bank funding, a further property valuation has been undertaken during this latest year, in addition to which the group has undertaken a value in use appraisal and valuation. As a result, the carrying value of the company property in the group has again been re-assessed and reduced, this reflected in the group accounts. Despite this downward movement, there remains a net positive revaluation reserve in relation to the group company property, this as a result of earlier upward valuation movements, with the current carrying value of the property, as revalued, being in excess of cost. The nature of the group property assets is such that the valuation is very much structured around the earning capacity of those assets which itself has been substantially impacted by the effect of world events and macro-economic factors which have significantly affected the financial results recorded during this difficult period. As a result of the reduction in value within the group, there has been a historic technical breach of the 'loan to value' financial covenant applicable to the group debt secured as against the property. Management have subsequently re-negotiated variations to the terms of the group finance facilities which will address the subject covenant going forward and negate the breach. This re-negotiation is also indicative of the ongoing support being provided by the funding provider. As a result of the technical breach during the accounting period, management have determined that the long term portion of the debt be presented as a current liability in the financial statements of the group, which presentation exacerbates the net current liability position of the group. Whilst the group is still considered to be a going concern, a material uncertainty inevitably exists.
Disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:
(a) Disclosures in respect of each class of share capital have not been presented.
(b) No cash flow statement has been presented for the company.
(c) Disclosures in respect of financial instruments have not been presented.
(d) No disclosure has been given for the aggregate remuneration of key management personnel.
Consolidation
The financial statements consolidate the financial statements of the Group and all of its subsidiary undertakings.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for the supply of accommodation, food, drinks and related goods at the group's hotel site, stated net of discounts and of Value Added Tax. Revenue from the sale of the above items is recognised when the significant risks and rewards of ownership have transferred to the buyer, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
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:
Freehold property
-
No depreciation
Fixtures and fittings
-
3 to 10 years straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
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.
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.
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. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
3,903,004
4,110,561
------------
------------
The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Management charges receivable
100,000
---------
----
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
590,500
590,500
Depreciation of tangible assets
122,673
188,879
Gains on disposal of tangible assets
( 1,294)
Impairment of trade debtors
5,614
5,344
---------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
10,000
8,750
--------
-------
8. Staff costs
The average number of persons employed by the group during the year, including the directors, amounted to:
2024
2023
No.
No.
Management staff
14
14
Administration and support
87
91
----
----
101
105
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
1,651,593
1,582,229
Social security costs
120,241
104,872
Other pension costs
24,670
20,120
------------
------------
1,796,504
1,707,221
------------
------------
9. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
806
268
----
----
10. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
177,571
124,867
Interest on obligations under finance leases and hire purchase contracts
108,760
103,309
Other interest payable and similar charges
100,000
100,000
---------
---------
386,331
328,176
---------
---------
11. Intangible assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
5,905,005
------------
Amortisation
At 1 April 2023
3,952,308
Charge for the year
590,500
------------
At 31 March 2024
4,542,808
------------
Carrying amount
At 31 March 2024
1,362,197
------------
At 31 March 2023
1,952,697
------------
The company has no intangible assets.
Kenwood Hotel Property Limited acquired the entire issued share capital of Venice Regal Sheffield Limited on 23 July 2016. The consideration for the shares was £4,392,297 and related costs amounted to £131,935. The net book value of the liabilities acquired was £1,380,773.
12. Tangible assets
Group
Freehold property
Long leasehold property
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2023
1,012,394
5,100,000
915,954
7,028,348
Additions
121,163
121,163
Disposals
( 754,228)
( 754,228)
Revaluations
( 900,000)
( 900,000)
------------
------------
---------
------------
At 31 March 2024
1,012,394
4,200,000
282,889
5,495,283
------------
------------
---------
------------
Depreciation
At 1 April 2023
864,028
730,787
1,594,815
Charge for the year
122,673
122,673
Disposals
( 754,228)
( 754,228)
------------
------------
---------
------------
At 31 March 2024
864,028
99,232
963,260
------------
------------
---------
------------
Carrying amount
At 31 March 2024
148,366
4,200,000
183,657
4,532,023
------------
------------
---------
------------
At 31 March 2023
148,366
5,100,000
185,167
5,433,533
------------
------------
---------
------------
The company has no tangible assets.
The leasehold property comprises hotel property, being the land, buildings, and integral fixtures and fittings contained therin. The company property was freehold until July 2016 when the company sold the freehold and entered a sale and leaseback arrangement. The directors have obtained a formal valuation of the long leasehold property with the sale and leaseback arrangement in place and have used this as the basis for arriving at the fair value now being carried in the accounts. Depreciation has not been provided as the value in use of the property and the anticipated long expected useful life, coupled with the 150 year lease and high expected residual value, mean that any depreciation charge would not be material. Deferred tax is not provided on property sold subject to a sale and leaseback arrangement. The long length of the lease connected to the property and the associated discount effect would mean any deferred tax charge would be trivial.
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Group
Long leasehold property
Fixtures and fittings
Total
£
£
£
At 31 March 2024
4,200,000
4,200,000
------------
----
------------
At 31 March 2023
5,100,000
4,010
5,104,010
------------
-------
------------
13. Investments
The group has no investments.
Company
Shares in group undertakings
£
Cost
At 1 April 2023 and 31 March 2024
1
----
Impairment
At 1 April 2023 and 31 March 2024
----
Carrying amount
At 1 April 2023 and 31 March 2024
1
----
At 31 March 2023
1
----
Subsidiaries, associates and other investments
Details of the investments in which the parent company has an interest of 20% or more are as follows:
Class of share
Percentage of shares held
Subsidiary undertakings
Kenwood Hotel Property Limited
ordinary
100
Venice Regal Sheffield Limited
ordinary
100
Vine Kenwood Developments Limited
ordinary
100
All subsidiaries are consolidated in the group accounts, have the same registered address as the company and are registered in England and Wales.
14. Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
33,059
26,662
--------
--------
----
----
15. Debtors
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade debtors
110,001
125,091
Amounts owed by group undertakings
999,999
999,999
Prepayments and accrued income
73,760
66,504
Other debtors
311,844
358,074
---------
---------
---------
---------
495,605
549,669
999,999
999,999
---------
---------
---------
---------
16. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2024
2023
£
£
Cash at bank and in hand
585,539
561,931
Bank overdrafts
( 89,057)
---------
---------
496,482
561,931
---------
---------
17. Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans and overdrafts
2,014,390
2,039,085
Trade creditors
299,217
352,279
Accruals and deferred income
373,066
490,983
Social security and other taxes
20,898
53,426
Obligations under finance leases and hire purchase contracts
20,000
20,300
Other creditors
2,190,577
1,240,276
------------
------------
----
----
4,918,148
4,196,349
------------
------------
----
----
The bank loan is secured upon all assets of the group.
18. Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Debenture loans
1,000,000
1,000,000
1,000,000
1,000,000
Obligations under finance leases and hire purchase contracts
2,829,293
2,849,293
Other creditors
2,023,104
2,037,421
------------
------------
------------
------------
5,852,397
5,886,714
1,000,000
1,000,000
------------
------------
------------
------------
The bank loans are secured upon the assets of the group.
The obligations under finance leases and hire purchase contracts includes a total figure of £2,849,293 (2023: £2,869,293), including both current and non-current portions, relating to monies received by the company as part of the freehold property sale and leaseback arrangement. The amount advanced to the company in July 2016 in respect of this transaction, was £3,000,000 and a lease of 150 years was entered into for an initial rent of £102,500 per annum; this sum will increase by RPI each year. Under the terms of the arrangement the company has the option to re-purchase the freehold for £1, on the day before the lease expires.
Sale and leaseback accounting treatment requires the sum of £3,000,000 received for the property to be taken to the statement of financial position as a creditor and payments of the lease element to be apportioned between capital requirements and interest over the term of the lease.
The element repayable over five years from the balance sheet date is £2,749,293 (2023: £2,769,293).
Other creditors includes a total figure of £2,037,421 (2023: £2,051,738), including both current and non-current portions, relating to the profit on disposal of a freehold property in July 2016. The property in question had a carrying value of £852,516 and was sold for a total of £3,000,000 as part of sale and leaseback arrangement. Under the terms of the arrangement the group has the option to re-purchase the freehold for £1, on the day before the lease expires.
Sale and leaseback accounting treatment requires the profit on disposal to be taken to the balance sheet as a creditor and this will be amortised at a rate of £14,317 per annum for 150 years.
This figure of £2,023,104 (2023: £2,037,421), shown as creditors due after more than one year, relates entirely to this transaction and £1,965,838 (2023: 1,980,155) of this sum relates to more than five years.
19. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Not later than 1 year
20,300
20,300
Later than 1 year and not later than 5 years
80,000
80,000
Later than 5 years
2,748,993
2,769,293
------------
------------
----
----
2,849,293
2,869,593
------------
------------
----
----
20. Financial risk management objectives and policies
The exposure of the company to price risk, credit risk, liquidity risk and cash flow risk is not considered material for the assessment of the assets, liabilities, financial position and income or expenditure of the company.
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 24,670 (2023: £ 20,120 ).
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
23. Reserves
Non-distributable revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.
24. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
561,931
23,608
585,539
Bank overdrafts
(89,057)
(89,057)
Debt due within one year
(2,059,385)
114,052
(1,945,333)
Debt due after one year
(3,849,293)
20,000
(3,829,293)
------------
---------
------------
( 5,346,747)
68,603
( 5,278,144)
------------
---------
------------
Vine Kenwood Limited
Notes to the Financial Statements (continued)
Year ended 31 March 2024
25. Other financial commitments
There is a cross guarantee with the following companies in respect of the obligations of Vine Kenwood Limited : Vine Hotels Limited Sheffield Park Hotel Property Limited Sheffield Park Hotel Limited Dolphin Hotel Property Limited Dolphin Hotel (Hampshire) Limited Cresta Court Hotel Holdings Limited Cresta Court Hotel Property Limited Harrop Hotels Limited Kenwood Hotel Property Limited Venice Regal Sheffield Limited Vine Kenwood Developments Limited The bank borrowings of the above are secured upon all assets of the company and also by a debenture from each of (i) Vine Hotels Limited and (ii) Vine Kenwood Limited over all of their assets and undertakings. In addition, there is an inter-creditor deed between Santander Bank, each obligor above, Greg Dyke, Susan Howes and Garin Davies.
26. Directors' advances, credits and guarantees
At the year end date one of the company's directors, Mr G Dyke , had advanced a loan of £1,000,000 (2023: £1,000,000) to the company. The loan has no fixed repayment terms and attracts interest of 10% per annum. There is a deed of guarantee and indemnity in respect of the loan made between the above director Vine Kenwood Limited and the following members of the VIne Kenwood Group: Kenwood Hotel Property Limited Venice Regal Sheffield Limited Vine Kenwood Developments Limited The loan is secured by a fixed and floating charge over all assets of the group companies. Interest totalling £100,000 (2023: £100,000) in respect of this loan has been charged to the company during the year.
27. Related party transactions
Company
An unlimited cross guarantee has been given to Santander UK plc as security over any amounts owing to the bank by Vine Kenwood Limited and its three subsidiaries, Kenwood Hotel Property Ltd, Venice Regal Sheffield Limited and Vine Kenwood Developments Limited. The group and the company have taken advantage of exemption, under the terms of Financial Reporting Standard 102, not to disclose related party transactions with fellow 100% group companies.
28. Controlling party
The group and the company is under control of Mr G Dyke and Ms S Howes , who between them, own 75% of the issued share capital.