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COMPANY REGISTRATION NUMBER: NI678725
Loughview Templepatrick Hotel Limited
Financial Statements
30 June 2024
Loughview Templepatrick Hotel Limited
Financial Statements
Year ended 30 June 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14
Loughview Templepatrick Hotel Limited
Officers and Professional Advisers
The board of directors
C Kearney
P Kearney
S Carson
Registered office
Aisling House
50 Stranmillis Embankment
Belfast
BT9 5FL
Auditor
Maneely Mc Cann Chartered Accountants
Chartered accountants & statutory auditor
Aisling House
50 Stranmillis Embankment
Belfast
BT9 5FL
Bankers
Ulster Bank Limited
11-16 Donegall Square East
Belfast
BT1 5UB
First Trust Bank
322 Antrim Road
Glengormley
Newtownabbey
BT36 5EQ
Solicitors
McKees
The Linenhall
32-38 Linenhall Street
Belfast
Northern Ireland
Antrim
BT2 8BG
Tughan's
Marlborough House
30 Victoria Street
Belfast
BT1 3GG
Loughview Templepatrick Hotel Limited
Strategic Report
Year ended 30 June 2024
Review of the company's business The directors present their strategic report for the year ended 30 June 2024. The company's principal activities during the year was that of a hotelier. The company is a subsidiary of the Kilmona Group. The Kilmona Group has the necessary cash cover and secured lender support to meet its total ongoing unsecured creditor obligations and liabilities for the medium to long term. In light of the above, the Directors consider it appropriate to prepare the financial statements on a going concern basis.
Principal risks and uncertainties The key business risks which could impact on the performance of the company are considered to be competition from local competitors, employee retention, the cost of living crisis and increased energy costs. The company is subject to the typical risks associated with the hospitality industry which include changes in consumer preferences, economic conditions, and competition. Additionally, the success of the company is dependent on the hotel's ability to attract and retain guests, as well as its ability to effectively manage costs. The company's management will continue to monitor these risks and take any necessary actions to mitigate their potential impact on the company's performance. Management of the company recognises that its most important resource is its people; their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical and the company has invested increasingly in employment training and development and has introduced appropriate incentive and career progression arrangements. The company is committed to achieving the highest practical standards in health and safety management and strives to make all hotels and offices safe environments for employees and customers alike. Risk assessments have been completed and procedures implemented to provide a safe working environment for staff. The company strives to improve energy efficiency and reduce energy costs. The company continues to replace LED lights, install sensors and upgrade air conditioning systems.
Business Review The directors consider the results for the current year and position of the company at year end to be satisfactory. The company's result for the period is an operating loss of £1,162,174 (2023: £961,278) and a loss on ordinary activities before taxation of £1,320,705 (2023 : £1,042,606). At the period end net assets of the company were £5,202,271 (2023: £1,985,814).
Financial key performance indicators The directors consider Turnover, Gross Profit and EBITDA (earnings before interest, tax, depreciation and amortisation) to be the key performance indicators for the company.
Financial risk management The company's operations expose it to a variety of financial risks that include the effects of changes in debt, market prices, credit risk, liquidity risk and interest rate risk. The company and the group have in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and related finance costs. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set out by the board are implemented by the directors. Given the nature and location of its operators the company and the group are not significantly exposed to price risk or foreign exchange risk. Interest rate risk The company has a policy of maintaining debt at competitive rates to ensure a reasonable degree of certainty over future interest cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in nature or size. Credit risk The company monitors credit risk closely and considers that its current policies of credit checks meet its objectives of managing exposure to credit risk. The company has no significant concentrations of credit risk. Liquidity risk The company actively maintains a mixture of short and long term debt finance to ensure the company has sufficient funds for operations and planned expansions.
This report was approved by the board of directors on 18 December 2024 and signed on behalf of the board by:
C Kearney
Director
Registered office:
Aisling House
50 Stranmillis Embankment
Belfast
BT9 5FL
Loughview Templepatrick Hotel Limited
Directors' Report
Year ended 30 June 2024
The directors present their report and the financial statements of the company for the year ended 30 June 2024 .
Directors
The directors who served the company during the year were as follows:
C Kearney
P Kearney
S Carson
Dividends
The directors do not recommend the payment of a dividend.
Future developments
The Directors intend to develop and maximise the inherent medium to long term economic value of the company's asset base.
Employment of disabled persons
The company gives full and fair consideration to applications for employment made by disabled persons where the requirements of the job can be adequately fulfilled. Where existing employees become disabled, it is the company's policy, wherever practicable, to provide continuing employment under normal terms and conditions, and to provide training, career development and promotion wherever possible.
Employee involvement
The company provides employees with information on matters of concern to them through normal management channels. The involvement of the employees in the company's performance is encouraged though appropriate incentive arrangements.
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 company and 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 judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 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 company's auditor is aware of that information.
This report was approved by the board of directors on 18 December 2024 and signed on behalf of the board by:
C Kearney
Director
Registered office:
Aisling House
50 Stranmillis Embankment
Belfast
BT9 5FL
Loughview Templepatrick Hotel Limited
Independent Auditor's Report to the Members of Loughview Templepatrick Hotel Limited
Year ended 30 June 2024
Opinion
We have audited the financial statements of Loughview Templepatrick Hotel Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity 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 company's affairs as at 30 June 2024 and of its 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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: Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; - results of our enquiries of management about their own identification and assessment of the risks of irregularities; - any matters we identified having obtained and reviewed the Group'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 regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. 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 Group 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 Companies Act 2006 and Taxation Legislation. Audit response to risks identified Our procedures to respond to risks identified included the following: - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - enquiring of management and external legal counsel concerning actual and potential litigation and claims; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in new making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. 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 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 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 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. 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.
Mr Cathal Maneely
(Senior Statutory Auditor)
For and on behalf of
Maneely Mc Cann Chartered Accountants
Chartered accountants & statutory auditor
Aisling House
50 Stranmillis Embankment
Belfast
BT9 5FL
18 December 2024
Loughview Templepatrick Hotel Limited
Statement of Comprehensive Income
Year ended 30 June 2024
2024
2023
Note
£
£
Turnover
4
5,878,788
5,210,057
Cost of sales
4,018,868
3,573,119
------------
------------
Gross profit
1,859,920
1,636,938
Administrative expenses
3,394,972
2,684,174
Other operating income
5
372,878
85,958
------------
------------
Operating loss
6
( 1,162,174)
( 961,278)
Interest payable and similar expenses
10
158,531
81,328
------------
------------
Loss before taxation
( 1,320,705)
( 1,042,606)
Tax on loss
11
683,396
77,750
------------
------------
Loss for the financial year
( 2,004,101)
( 1,120,356)
------------
------------
Revaluation of tangible assets
5,220,558
------------
------------
Total comprehensive income for the year
3,216,457
( 1,120,356)
------------
------------
All the activities of the company are from continuing operations.
Loughview Templepatrick Hotel Limited
Statement of Financial Position
30 June 2024
2024
2023
Note
£
£
Fixed assets
Intangible assets
12
50,000
50,000
Tangible assets
13
25,611,615
17,647,283
-------------
-------------
25,661,615
17,697,283
Current assets
Stocks
14
32,645
24,699
Debtors
15
648,297
359,330
Cash at bank and in hand
344,613
72,862
------------
---------
1,025,555
456,891
Creditors: amounts falling due within one year
16
5,369,729
4,727,398
------------
------------
Net current liabilities
4,344,174
4,270,507
-------------
-------------
Total assets less current liabilities
21,317,441
13,426,776
Creditors: amounts falling due after more than one year
17
14,137,462
10,146,650
Provisions
19
1,977,708
1,294,312
-------------
-------------
Net assets
5,202,271
1,985,814
-------------
-------------
Capital and reserves
Called up share capital
22
100
100
Revaluation reserve
23
9,604,989
4,384,431
Profit and loss account
23
( 4,402,818)
( 2,398,717)
------------
------------
Shareholders funds
5,202,271
1,985,814
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 18 December 2024 , and are signed on behalf of the board by:
C Kearney
Director
Company registration number: NI678725
Loughview Templepatrick Hotel Limited
Statement of Changes in Equity
Year ended 30 June 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 July 2022
100
4,384,431
( 1,278,361)
3,106,170
Loss for the year
( 1,120,356)
( 1,120,356)
----
------------
------------
------------
Total comprehensive income for the year
( 1,120,356)
( 1,120,356)
At 30 June 2023
100
4,384,431
( 2,398,717)
1,985,814
Loss for the year
( 2,004,101)
( 2,004,101)
Other comprehensive income for the year:
Revaluation of tangible assets
13
5,220,558
5,220,558
----
------------
------------
------------
Total comprehensive income for the year
5,220,558
( 2,004,101)
3,216,457
----
------------
------------
------------
At 30 June 2024
100
9,604,989
( 4,402,818)
5,202,271
----
------------
------------
------------
Loughview Templepatrick Hotel Limited
Notes to the Financial Statements
Year ended 30 June 2024
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is Aisling House, 50 Stranmillis Embankment, Belfast, BT9 5FL.
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
The directors have prepared cashflow forecasts and have a reasonable expectation that they will have adequate resources to allow the company to continue its operations for a period of not less than 12 months from the date of approval of these financial statements. The company has the necessary cash cover, group and secured lender support to meet its total on-going unsecured creditor obligations and liabilities. In light of the above, the directors consider it appropriate to prepare the financial statements on a going concern basis.
Disclosure exemptions
The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Kilmona Group Limited which can be obtained from 8th Floor, Bedford House, Bedford Street, Belfast, BT2 7FD. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company.
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.
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. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); 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. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
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.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
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:
Liquor licences
-
Liquor licences ae not amortised
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:
Long leasehold property
-
2% straight line
Fixtures and fittings
-
15% reducing balance
Motor vehicles
-
15% reducing balance
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. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
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.
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
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.
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.
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 and the performance 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.
Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
4. Turnover
Turnover arises from:
2024
2023
£
£
Rendering of services
5,878,788
5,210,057
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Other operating income
372,878
85,958
---------
--------
6. Operating loss
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
( 2,292)
Depreciation of tangible assets
1,059,790
737,154
Loss on disposal of tangible assets
55,086
21,536
Foreign exchange differences
( 1,684)
------------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
12,000
12,000
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
131
131
Administrative staff
4
5
----
----
135
136
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,342,654
2,086,605
Social security costs
155,039
127,414
Other pension costs
37,410
31,255
------------
------------
2,535,103
2,245,274
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
54,622
--------
----
10. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
135,747
56,899
Interest on obligations under finance leases and hire purchase contracts
22,784
24,429
---------
--------
158,531
81,328
---------
--------
11. Tax on loss
Major components of tax expense
2024
2023
£
£
Deferred tax:
Origination and reversal of timing differences
683,396
77,750
---------
--------
Tax on loss
683,396
77,750
---------
--------
Reconciliation of tax expense
The tax assessed on the loss on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Loss on ordinary activities before taxation
( 1,320,705)
( 1,042,606)
------------
------------
Loss on ordinary activities by rate of tax
( 331,149)
( 198,095)
Effect of expenses not deductible for tax purposes
( 523)
Effect of capital allowances and depreciation
( 233,317)
( 243,005)
Unused tax losses
564,989
441,100
Deferred Tax Adjustment
683,396
77,750
------------
------------
Tax on loss
683,396
77,750
------------
------------
12. Intangible assets
Liquor Licences
£
Cost
At 1 July 2023 and 30 June 2024
50,000
--------
Amortisation
At 1 July 2023 and 30 June 2024
--------
Carrying amount
At 30 June 2024
50,000
--------
At 30 June 2023
50,000
--------
13. Tangible assets
Long leasehold property
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 July 2023
13,270,385
5,043,252
395,499
18,709,136
Additions
21,195
3,678,398
232,557
3,932,150
Disposals
( 144,000)
( 144,000)
Revaluations
5,220,558
5,220,558
-------------
------------
---------
-------------
At 30 June 2024
18,512,138
8,721,650
484,056
27,717,844
-------------
------------
---------
-------------
Depreciation
At 1 July 2023
196,791
835,018
30,044
1,061,853
Charge for the year
100,662
901,317
57,811
1,059,790
Disposals
( 15,414)
( 15,414)
-------------
------------
---------
-------------
At 30 June 2024
297,453
1,736,335
72,441
2,106,229
-------------
------------
---------
-------------
Carrying amount
At 30 June 2024
18,214,685
6,985,315
411,615
25,611,615
-------------
------------
---------
-------------
At 30 June 2023
13,073,594
4,208,234
365,455
17,647,283
-------------
------------
---------
-------------
Tangible assets held at valuation
The long leasehold property was revalued by the directors at its Open Market Value at 30 June 2024. If long leasehold property had not been revalued it would have been included in the financial statements at 30 June 2024 at an historic cost of £8,849,620 (2023: £8,828,425).
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:
Fixtures and fittings
Motor vehicles
Total
£
£
£
At 30 June 2024
260,761
299,623
560,384
---------
---------
---------
At 30 June 2023
303,247
170,545
473,792
---------
---------
---------
14. Stocks
2024
2023
£
£
Consumables and goods for resale
32,645
24,699
--------
--------
15. Debtors
2024
2023
£
£
Trade debtors
132,633
95,691
Amounts owed by group undertakings
20,100
100
Prepayments and accrued income
373,967
195,915
Other debtors
121,597
67,624
---------
---------
648,297
359,330
---------
---------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,408,320
2,670,532
Accruals and deferred income
321,082
579,584
Social security and other taxes
144,869
36,219
Obligations under finance leases and hire purchase contracts
190,413
135,883
Director loan accounts
1,273,760
1,251,773
Other creditors
31,285
53,407
------------
------------
5,369,729
4,727,398
------------
------------
17. Creditors: amounts falling due after more than one year
2024
2023
£
£
Amounts owed to group undertakings
13,806,470
9,355,765
Accruals and deferred income
71,808
489,083
Obligations under finance leases and hire purchase contracts
259,184
301,802
-------------
-------------
14,137,462
10,146,650
-------------
-------------
The company has provided security to its fellow subsidiary company's lender, in the form of fixed and floating charges over the property or undertaking of the company.
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
190,413
135,883
Later than 1 year and not later than 5 years
259,184
301,802
---------
---------
449,597
437,685
---------
---------
19. Provisions
Deferred tax (note 20)
£
At 1 July 2023
1,294,312
Additions
683,396
------------
At 30 June 2024
1,977,708
------------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 19)
1,977,708
1,294,312
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
211,830
778,599
Revaluation of tangible assets
2,401,247
1,096,108
Unused tax losses
( 635,369)
( 580,395)
------------
------------
1,977,708
1,294,312
------------
------------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 37,410 (2023: £ 31,255 ).
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
Revaluation reserve - This reserve records the value of tangible 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. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2024
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
P Kearney
( 1,251,773)
( 21,987)
( 1,273,760)
------------
--------
------------
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
P Kearney
( 520,173)
( 731,600)
( 1,251,773)
---------
---------
------------
25. Related party transactions
Control The company is a wholly owned subsidiary of Loughview Templepatrick Limited, a company incorporated in Northern Ireland. Loughview Templepatrick Limited is a wholly owned subsidiary of Loughview Leisure Holdings Limited, a company incorporated in Northern Ireland. Loughview Leisure Holdings Limited is a wholly owned subsidiary of Kilmona Group Limited, a company incorporated in Northern Ireland. P Kearney is the shareholder of Kilmona Group Limited and as such is considered to be the company's ultimate controlling party. Group party transactions The company has taken advantage of the exemption from disclosing related party transactions with group companies, in accordance with Financial Reporting Standard No 102 Section 33, Related Party Disclosures. Related party transactions There were no related party transactions in the period. Key management personnel remuneration There was no key management remuneration in the period (June 2023: £NIL).