REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31 March 2024 |
for |
Black Sheep Management Services Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31 March 2024 |
for |
Black Sheep Management Services Limited |
Black Sheep Management Services Limited (Registered number: SC635385) |
Contents of the Financial Statements |
for the Year Ended 31 March 2024 |
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 |
Notes to the Financial Statements | 13 |
Black Sheep Management Services Limited |
Company Information |
for the Year Ended 31 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Ground Floor |
Hygeia Building |
66-68 College Road |
Harrow |
Middlesex |
HA1 1BE |
Black Sheep Management Services Limited (Registered number: SC635385) |
Strategic Report |
for the Year Ended 31 March 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
Overall, the revenue increased to £6,778,544 (2023 - 5,481,580) and the company made a loss for the |
year of £359,773 (2023 - loss £916,708). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Directors have carried out a robust assessment of the principal risks facing the Company, including those that would threaten its brand and reputation, delivery of its strategy or the physical assets it manages, people of systems |
This is carried out under a risk management framework including internal controls to protect our business as far as reasonably possible against known and emerging risks and a periodic review of those controls to reduce the risk of failing to achieve our business objectives. |
Additional risks and uncertainties, not presently known to management or deemed less material currently, may also have an adverse effect on the business. Further, the exposure to each risk will evolve as we take mitigating actions, or as new risks emerge. The risks set out below provide a summary of the position at the date of the annual report. |
Liquidity risk |
The Company maintains sufficient funds and generates cash from operations to meet working capital requirements. The Company regularly undertakes regular cash flow forecasting in order to ensure working capital requirements are met. Further support is available, should it be required from the parent entity, Mars Hospitality (UK) Limited. |
Regulatory risk |
There are a number of regulations the company has to follow, in order to be able to operate. The Company has robust policies and procedures in place which ensures adherence of these regulations and ensures that its keeps up to date with any changes in the regulations. |
Going Concern |
The company made a loss during the year , however, it was in a net asset position at the year end. The directors of the company are confident in the long term prospects of the company. Furthermore, the parent company, Mars Hospitality (UK) Limited, has confirmed that if required, it will provide financial and operating support to enable the company to continue trading and meeting its liabilities as they fall due. |
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for the period for at least 12 months from the approval of the financial statements and therefore have prepared the financial statements on going concern basis. |
APPROVED BY THE BOARD AND SIGNED ON ITS BEHALF: |
Black Sheep Management Services Limited (Registered number: SC635385) |
Report of the Directors |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of operating the hotel accommodations owned by the Mars Group |
DIVIDENDS |
The Company's financial results have been discussed in the Strategic Report. During the year a dividend payment of £200,000 (2023 - £200,000) has been paid on preference shares. The total dividend payable on the preference shares (excluding the effective interest rate) was £200,000 (2023 - £200,000), equivalent to 2.5% of share costs. No further dividends were declared for the year ended 31 March 2024.. The additional interest charged of £38,042 (2023: £36,621) relates to the differential between the dividend rate and effective interest rate. |
No dividends were distributed for the year ended 31st March 2024 on the ordinary shares (2023:nil). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
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. |
Black Sheep Management Services Limited (Registered number: SC635385) |
Report of the Directors |
for the Year Ended 31 March 2024 |
AUDITORS |
The auditors, KNAV, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
APPROVED BY THE BOARD AND SIGNED ON ITS BEHALF: |
Report of the Independent Auditors to the Members of |
Black Sheep Management Services Limited |
Opinion |
We have audited the financial statements of Black Sheep Management Services Limited (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 31 March 2024 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 |
Black Sheep Management Services Limited |
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 |
Black Sheep Management Services Limited |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We design our procedures so as to obtain sufficient appropriate audit evidence that the financial statements are not materially misstated due to non-compliance with laws and regulations or due to fraud or error. |
We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations - this responsibility lies with management with the oversight of the Directors. |
Based on our understanding of the Company and industry, discussions with management, we identified Companies Act 2006, Financial Reporting Standard 102 Section 1A and UK taxation legislation as having a direct effect on the amounts and disclosures in the financial statements. |
As part of the engagement team discussion about how and where the Company's financial statements may be materially misstated due to fraud, we did not identify any areas with an increased risk of fraud. |
Our audit procedures included: |
- enquiry of management about the Company's policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances of non-compliance; |
- examining supporting documents for all material balances, transactions and disclosures; |
- evaluation of the selection and application of accounting policies related to subjective measurements and complex transactions; |
- testing the appropriateness of journal entries recorded in the general ledger and other adjustments made in the preparation of the financial statements; |
- review of accounting estimates for biases. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). |
The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us. |
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. |
Report of the Independent Auditors to the Members of |
Black Sheep Management Services Limited |
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 |
Ground Floor |
Hygeia Building |
66-68 College Road |
Harrow |
Middlesex |
HA1 1BE |
Black Sheep Management Services Limited (Registered number: SC635385) |
Income Statement |
for the Year Ended 31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,246,596 | 2,204,063 |
(110,271 | ) | (815,804 | ) |
Other operating income |
OPERATING LOSS | 6 | ( |
) | ( |
) |
Interest receivable and similar income |
(84,911 | ) | (622,301 | ) |
Interest payable and similar expenses | 7 |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 8 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Black Sheep Management Services Limited (Registered number: SC635385) |
Other Comprehensive Income |
for the Year Ended 31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
LOSS FOR THE YEAR | ( |
) | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
Black Sheep Management Services Limited (Registered number: SC635385) |
Balance Sheet |
31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Capital Contribution Reserve | 17 |
Retained earnings | 17 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Black Sheep Management Services Limited (Registered number: SC635385) |
Statement of Changes in Equity |
for the Year Ended 31 March 2024 |
Called up | Capital |
share | Retained | Contribution | Total |
capital | earnings | Reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | (880,087 | ) | (36,621 | ) | (916,708 | ) |
Balance at 31 March 2023 | ( |
) | ( |
) |
Changes in equity |
Total comprehensive income | - | (321,731 | ) | 838,655 | 516,924 |
Balance at 31 March 2024 | ( |
) | ( |
) |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Black Sheep Management Services Limited is a |
2. | ACCOUNTING POLICIES |
Statement of compliance and basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102. The |
Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. |
Financial Reporting Standard 102-reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 paragraph 1.12(b), on the basis that it is a qualifying entity and its ultimate parent company, Mars Enterprises and Hospitality Private Limited, includes these in its own consolidated financial statements as at 31st March 2022 and these financial statements may be obtained from the Companies Registry in India: |
- the requirements of Section 7 Statement of Cashflows |
- the requirements of Section 3 Financial Statement Presentation Paragraph 3.17(d) |
- the requirements of Section 33 Related Party Disclosures Paragraph 33.7 |
- the requirements of Section 11 Basic Financial Instrument. |
The functional and presentational currency is pound sterling (£), being the currency of the primary economic environment in which the company operates. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
Turnover |
Sales from hotel operations is recognised in the profit and loss on an accruals basis, upon services being rendered which include room revenue. Sales from hotel operations includes income earned from sales of food and beverages and other miscellaneous income. No revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or associated costs. All turnover is disclosed net of VAT. |
Tangible fixed assets |
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated |
depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life, once the asset is placed into its intended use. |
Plant and machinery etc: 5 years on a Straight line |
Furniture, fixtures & fittings 5 years on a Straight line |
Motor Vehicles 4 years on a Straight Line |
Computer equipment: 4 years on a Straight line |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
Classification |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans from related parties. |
Recognition and measurement |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other |
debtors and creditors, are initially measured at present value of the future cash flows and subsequently at |
amortised cost using the effective interest method. |
Debt instruments that are payable or receivable within one year, typically trade creditors or debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms of financed at a rate of interest that is not a market rate or in case of an out-right short term loan not at a market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Impairment |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss if recognised in the Profit and loss account. |
For financial assets measured as amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discounted rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an |
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. |
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. |
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. |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The company made a loss during the year, however, it was in a net asset position at the year end. The directors of the company are confident in the long term prospects of the company. Furthermore, the parent company, Mars Hospitality (UK) Ltd, has confirmed that if required, it will provide financial and operating support to enable the company to continue trading and meeting its liabilities as they fall due. |
Consequently, the directors are confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for the period for at least 12 months from the approval of the financial statements and therefore have prepared the financial statements on a going concern basis. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. |
Trade creditors |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. |
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method. |
Share capital |
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. |
The Company's redeemable preference shares are classified as financial liabilities, because they bear non-discretionary dividends and are redeemable in cash by the holders. Non-discretionary dividends thereon are recognised as interest expense in profit or loss as accrued. |
Hire Purchase and Leasing commitments |
Assets held under finance leases are initially recognised as assets of the company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the company's policy on borrowing costs (see the accounting policy above). Contingent rentals are recognised as expenses in the periods in which they are incurred. |
Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the principal activities of the company. |
An analysis of turnover by class of business is given below: |
31.3.24 | 31.3.23 |
£ | £ |
An analysis of turnover by geographical market is given below: |
31.3.24 | 31.3.23 |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
31.3.24 | 31.3.23 |
£ | £ |
Wages and Salaries | 2,842,189 | 2,506,778 |
Social Security Costs | 257,026 | 224,388 |
Other Pension Costs | 18,397 | 16,903 |
3,117,612 | 2,,748,069 |
The average number of employees during the year was as followsHotel staff & Management | 110 | 104 |
5. | DIRECTORS' EMOLUMENTS |
31.3.24 | 31.3.23 |
£ | £ |
Directors Remuneration | 81,751 | 35,004 |
Pension contributions | 97 |
6. | OPERATING LOSS |
The operating loss is stated after charging: |
31.3.24 | 31.3.23 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Audit of the financial statements |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Year Ended | Year ended |
31.3.24 | 31.3.23 |
£ | £ |
Preference share dividend paid at 2.5% of consideration | 238,042 | 236,621 |
Bank Loan Interest | 5,940 | 2,501 |
Leasing | 30,880 | 55,285 |
274,862 | 294,407 |
During the year a dividend payment of £200,000 (2023: £200,000). The total dividend payable on preference shares (excluding the effective interest rate) for the year was £200,000, equivalent to 2.5% of the share consideration. No further dividends were declared for the year ended 31st March 2024..The additional interest charged of £38,042 (2023 £36,621),relates to the differential between the dividend rate and effective interest rate. |
8. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 March 2024 nor for the year ended 31 March 2023. |
Reconciliation of total tax charge 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: |
31.3.24 | 31.3.23 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2023 - |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Depreciation in excess of capital allowances |
Tax losses surrendered to group | - | (285 | ) |
Loss Carried Forward | 3,083 | 155,557 |
Total tax charge | - | - |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The net carrying amount of assets held under finance leases included in motor vehicles is £53,503(2023:£73,567) |
10. | STOCKS |
31.3.24 | 31.3.23 |
£ | £ |
Stocks |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Other Debtors | 104,821 | 72,641 |
Amounts owed by group undertakings |
VAT |
Prepayments and accrued income |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Hire purchase contracts (see note 15) |
Trade creditors |
Wages to be paid | 163,766 | 152,285 |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Accrued expenses |
Deposits and advances received | 751,222 | 575,995 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Preference shares (see note 14) |
Hire purchase contracts (see note 15) |
On 31.3.24 The company renegotiated the terms of its preference shares and extended the redemption dates, originally issued on 8.10.19, 17.12.19 and 7.4.21. |
This resulted in the following impacts; |
-De-recognition of original preference shares with a carrying amount of £7,961,781. |
-The recognition of a new Financial Liability of the preference shares at aa fair value of £7,085,084 |
- The difference of £876,687 was credited to the capital contribution reserve within equity. |
At the year end, there were 5,000,000 ( 2023 5,000,000) redeemable preference shares in issue (with a total value of £8,000,000 (2023 £8,000,000), each of which have no voting rights and are entitled to a fixed cumulative preferential dividend at the rate of 2.5% per share. These dividends rank for payment in priority to the payment of a dividend on ordinary shares in the Company and shall be payable annually. On a winding up they have rights to a return of capital and shall take priority over other classes of share. |
Each preference share is redeemable at cost of the preference share, at the request of the holder at a fixed redemption date of no sooner than after five years from the date of their allotment. |
14. | LOANS |
An analysis of the maturity of loans is given below: |
31.3.24 | 31.3.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Preference shares | 7,085,084 | 7,923,739 |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
15. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
31.3.24 | 31.3.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.24 | 31.3.23 |
value: | £ | £ |
Ordinary | 1 | 10,000 | 10,000 |
17. | RESERVES |
Capital |
Retained | Contribution |
earnings | Reserve | Totals |
£ | £ | £ |
At 1 April 2023 | ( |
) | (1,429,051 | ) |
Deficit for the year | (359,773 | ) | (359,773 | ) |
Transfers between reserves | 38,042 | (38,042 | ) | - |
Capital Cont Res Movement | - | 876,697 | 876,697 |
At 31 March 2024 | ( |
) | (912,127 | ) |
18. | RELATED PARTY DISCLOSURES |
At the year end the amounts owed to and from other companies within group companies was as follows, it should be noted that all the amounts are interest free, repayable on demand and unsecured. |
At the year end the company was owed a loan of £6,020,382 (2023:£7,080,000) by Mars Hospitality (UK) Limited (the company's parent company). The company was owed balance of £nil (2023: £372,056) by Mars Hospitality (UK) Limited for expenses paid on behalf of the parent company. |
Mars Highland Development Limited, Mars Projects Limited, Mars Commercial Property Holdings Limited and Black Sheep Adventures Limited all fellow group undertakings, owed the company £2,403 (2023: £nil), £82064,(2023: £nil), £339 (2023:£nil) and £nil (2023: £205) respectively for expenses that were paid on their behalf. |
The company owed balances to Mars Highland Development Limited, Mars Projects Limited and Mars Residential Property Holdings Limited, Mars Commercial Property Holdings Limited, Black Sheep Adventures Limited and Black Sheep Farms Limited all fellow group undertakings, £nil (2023: £154), £nil (2023: £12,171), £11,680 (2023: £71,951), £5,977 (202: £nil), £138 (2023: £3,349) respectively, towards expenses that were paid by those entities on behalf of the company. |
Black Sheep Management Services Limited (Registered number: SC635385) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
19. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling company is Mars Enterprises and Hospitality Private Limited a company registered in India. |
The smallest and the largest group for which consolidated financial statements are prepared, is that group headed by the ultimate parent undertaking, Mars Enterprises & Hospitality Private Ltd. Copies of these accounts can be obtained from Mars Enterprises & Hospitality Private Limited, Georgina C, Sherly Rajan Road, Bandra West, Mumbai 400 050, Maharashtra, India. |
The ultimate controlling party is Mr Sanjay Narang |