CHESTERLODGE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
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Capital redemption reserve
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Comprehensive income for the year
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Contributions by and distributions to owners
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Comprehensive income for the year
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Contributions by and distributions to owners
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Dividends: Equity capital
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The notes on pages 18 to 45 form part of these financial statements.
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CHESTERLODGE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
Cash flows from operating activities
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Profit for the financial year
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Depreciation of tangible assets
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(Loss)/gain on disposal of tangible assets
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Decrease/(increase) in stocks
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Net fair value (gains) on investment property
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Net fair value (gains) on listed investments
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Share of operating loss disposed in joint ventures
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Income from sale of share in joint ventures
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Income from listed investments
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Purchase of listed investments
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Sale of listed investments
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Proceeds from disposal of shareholding in associate companies
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Net cash from investing activities
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CHESTERLODGE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 APRIL 2024
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Acquisition and disposal of subsidiaries
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The notes on pages 18 to 45 form part of these financial statements.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Chesterlodge Limited is a private company limited by shares, incorporated in England and Wales. The address of the registered office is Chelsea Cloisters, Sloane Avenue, London, SW3 3DW.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
On the basis that equivalent disclosures are given in the consolidated financial statements, the Company has also taken advantage of the exemption not to provide certain disclosures as required by Section 11 Basic Financial Instruments and Section 12 Other Financial Instrument Issues.
The Company has also taken the exemption under section 1 of FRS 102 not to prepare a company statement of cash flows as required by Section 7 Statement of Cash Flows.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In the consolidated financial statements, joint ventures and associates are accounted for under the equity method. All subsidiaries have been included in the consolidated financial statements.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis.
The director has prepared forecasts for the period to 31 May 2026. Downside sensitivities have been applied to the forecasts and, even in the unlikely scenario that there is a prolonged decrease in demand for services, the company and group still has adequate resources to continue operations and the director concludes, therefore, that adopting the going concern basis of accounting in preparing the annual financial statements is appropriate.
Based on this assessment, the director considers that the group and company maintain an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations.
In addition, the group’s and company’s assets are assessed for recoverability on a regular basis, and the director considers that the group and company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.
The director has a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future and that there are no material uncertainties that lead to significant doubt upon the group’s and company’s ability to continue as a going concern. Thus the director has continued to adopt the going concern basis of accounting in preparing these financial statements.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Revenue arises from the letting of rooms and associated services at Sloane Avenue garage sales, sporting and estate services, commercial property lettings and rental income from investment properties. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable and represents amounts for the sale of goods, the provision of serviced apartments, investment property income and sporting estate and agricultural revenue in the normal course of business, net of discounts and other sales-related taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Group has transferred the significant risks and rewards of ownership to the buyer;
∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Group will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.
Defined benefit pension plan
The liability/asset recognised in the balance sheet in respect of the defined benefit pension scheme is the present value of the defined benefit obligation at the reporting date less the fair value of the plan assets at the reporting date. The defined benefit obligation is assessed using the projected unit of credit method and reviewed annually by independent actuaries. Service costs are charged to profit or loss so as to spread the costs over the service lives of employees. Net interest on the net defined benefit liability/asset is determined by multiplying the net defined benefit liability/asset by the discount rate, as determined at the start of the annual reporting period, using market yields on high liquidity corporate bonds that are denominated in Sterling and have terms approximating the estimated period of the future payments, taking account of any changes in the net defined benefit/liability asset during the period as a result of contribution and benefit payments. Net interest is charged to profit or loss in the period.
Re-measurements of the net defined benefit liability/asset are charged through other comprehensive income in the period in which they occur. Re-measurement of the net defined benefit liability/asset recognised in other comprehensive income is not reclassified to profit or loss in a subsequent period. Re-measurements of the net defined benefit liability/asset comprise actuarial gains and losses, the return on plan assets, excluding amounts included in net interest on the net defined benefit liability/asset.
If the defined benefit plan has been curtailed or settled during the year, the defined benefit obligation is decreased or eliminated and the group recognised the resulting gain or loss in profit or loss in the current period.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Revaluation of tangible fixed assets
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Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market prices, adjusted if necessary for differences in the nature, location or condition of the specific property. If this information is not available, alternative valuation methods are used, such as recent prices on less active markets, discounted cashflow projections or racked rent prime yield analyses. Valuations are performed by directors.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when declared. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the application of the company's accounting policies, the directors are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgments and sources of estimation uncertainty:
Valuation of land and buildings
The valuations of properties included in investment property and property, plant and equipment are derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset.
Contractual income
Rental income regarding one investment property in the group is determined subject to complex calculations stipulated in the contract with the tenant. Parts of these calculations can be subject to indexation and some definitions are critical to the calculations. Income has been recognised in line with the conservative interpretation of these definitions.
VAT due to HMRC
Included in the group creditor balance 'other taxation and social security' is a balance due to HMRC following a VAT enquiry into a subsidiary. The creditor has been valued at the full amount that the subsidiary was said to owe following a hearing at the High Court, plus interest. This verdict is currently being appealed by the subsidiary.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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An analysis of turnover by class of business is as follows:
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Serviced apartment lettings and services
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Garage fuel and shop sales
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Sporting estate and agricultural revenue
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Investment property revenue
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Analysis of turnover by country of destination:
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The operating profit is stated after charging:
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Other operating lease rentals
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Fees payable to the Group's auditor for the audit of the consolidated and parent Company's financial statements
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Fees payable to the Group's auditor for the audit of the Company's subsidiary undertakings
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Fees payable to the Group's auditor in respect of:
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Taxation compliance services
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All non-audit services not included above
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Staff costs were as follows:
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Cost of defined contribution scheme
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The above costs are the amounts charged to the profit and loss. These exclude staff costs incurred by Group employees on behalf the Chelsea Cloisters Management Limited service charge. With these costs included wages and salaries were £3,726,747 (2023: £3,622,086), social security costs were £393,045 (2023: £387,924) and pension costs were £65,543 (2023: 58,597). Total staff costs were £4,185,335 (2023: £4,068,607).
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The average monthly number of employees, including the director, during the year was as follows:
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During the year, retirement benefits were accruing to 1 director (2023: 1) in respect of defined benefit pension schemes.
During the year, the director received an interest free loan from the group. The maximum amount outstanding on this loan during the year was £984,022 (2023: £947,935). At the year end the amount due to the director was £4,028 and was included in other creditors (2023: £2,306).
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Dividends received from investments in equity instruments
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Interest payable and similar expenses
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Adjustments in respect of prior periods
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
12.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19.5%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19.5%)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Capital allowances for year in excess of depreciation
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Adjustments to tax charge in respect of prior periods
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Adjustments from tax rate change
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Deferred tax not recognised
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Deferred tax charged directly to equity
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Chargeable gains or losses
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Changes in provisions leading to an increase/(decrease) in the tax charge
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Remeasurement of deferred tax for rate changes
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Special factors affecting joint-ventures and associates leading to an increase (decrease) in the tax charge
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Other differences leading to an increase/(decrease) in the tax charge
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Total tax charge for the year
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Factors that may affect future tax charges
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The group has trading losses of £287,678 (2023: £287,678) available to utilise against future profits arising from the same trade.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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None of the group's intangible assets were held in the parent company.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Charge for the year on owned assets
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The net book value of land and buildings may be further analysed as follows:
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The land and buildings were valued by the director at 30 April 2024 on an open market value for existing use basis.
The original cost of the land and buildings amounted to £56,413,546 (2023: £55,388,257).
The company does not own any tangible fixed assets.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Freehold investment property
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Long term leasehold investment property
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The 2024 valuations were made by the director, on an open market value for existing use basis.
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If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:
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The company does not own any investment properties.
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Investments in subsidiary companies
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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The following were subsidiary and joint venture undertakings of the company. They are all registered in England and Wales:
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Chelsea Cloisters Estates Limited
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Chelsea Cloisters Management Limited
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Chelsea Cloisters Property Limited
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Chelsesa Cloisters Services Limited*
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Christopher Moran & Co Limited*†
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Group management and investment
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Christopher Moran Group Limited
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Christopher Moran Holdings Limited*†
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Property holding and parent company
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Christopher Moran Industries Limited
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Christopher Moran (LPM Brokers) Limited
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Christopher Moran (NM) Limited
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Christopher Moran Properties Limited
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Golden Lane Securities Limited*
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Halcyon Investments Limited
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The Hanipha (Ceylon) Tea & Rubber Company Limited
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Moran Gainher & Co Limited
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Whitelock Evans & Co Limited
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Christopher Moran Energy Limited*†
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Renewable energy development
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Glenfiddich Wind Limited*
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Renewable energy development
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Clashindarroch Windfarm Extension Limited
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Renewable energy development
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Glenfiddich West Limited*
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Renewable energy development
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Dorenell Windfarm Extension Limited
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Renewable energy development
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Chelsea Cloisters Management Limited is controlled by the group which owns 83.1% of its voting rights. It is thus a subsidiary undertaking as defined by the Companies Act 2006. It has a year end of 31 December and has been consolidated in accordance with the requirements of FRS 102 whereby management information up to 30 April 2024 has been utilised. The group's shareholding in Chelsea Cloisters Management Limited is 32.7% of the total share capital on the basis of its nominal value. Under the articles of association of Chelsea Cloisters Management Limited, there are restrictions in place regarding the issuing of dividends and other distributions to shareholders.
*These subsidiaries of the Company were entitled to exemption from audit under section 479A of the Companies Act 2006 ("the Act"). Chesterlodge Limited guarantees all of these subsidiaries under section 479C of the Act in respect of the year ended 30 April 2024.
†These subsidiaries are direct subsidiaries of Chesterlodge Limited.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Finished goods and goods for resale
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The difference between purchase price or production cost of stocks and their replacement cost is not material.
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The carrying value of stocks are stated net of impairment losses totalling £400,000 (2023 - £Nil). Impairment losses totalling £400,000 (2023 - £Nil) were recognised in cost of sales as following a change in the market value of property inventories.
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Due after more than one year
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Prepayments and accrued income
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Amounts owed by group undertakings
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Prepayments and accrued income
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Current asset investments
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Listed investments are measured at fair value through profit or loss based on the closing share price as at the reporting date.
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Gains on remeasurement to fair value
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Cash and cash equivalents
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Included in other creditors is the carrying value of joint ventures which as at 30 April 2024 was a liability of £16,864 (2023: £16,864).
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Financial assets measured at fair value through profit or loss
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Financial assets measured at fair value through profit or loss comprise listed investments only. They are valued at the closing share price on 30 April 2024.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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At beginning of year (as restated)
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Charged to profit or loss
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Charged to other comprehensive income
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The deferred tax balance is made up as follows:
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Accelerated capital allowances
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Tax losses carried forward
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Other temporary timing differences
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Revaluation of fixed assets
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Asset - due within one year
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Expected reversal of deferred taxation assets and liabilties
Deferred tax liabilities related to capital allowances will crystalise evenly over the useful life of the asset as it depreciates without additional tax relief. Liabilities related to revaluation of fixed assets will crystalise upon sale of those fixed assets.
Deferred tax assets will crystalise upon the utilisation of brought forward tax losses.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Allotted, called up and fully paid
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10,000 (2023 - 10,000) Ordinary shares shares of £1.00 each
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Share premium account
Represents the amount paid for share capital above the nominal value.
Revaluation reserve
Comprises unrealised gains on property, plant and equipment held at fair value above and beyond its historic cost.
Capital redemption reserve
Represents amounts previously held as the nominal value of share capital, but subsequently repurchased by the entity.
Profit and loss account
Comprises the balance of profits accumulated over the life of the group. As at 30 April 2024, within the profit and loss account, the Group had distributable reserves of £133,541,461 (2023: £121,451,800) and undistributable reserves of £110,208,878 (2023: £109,280,423). As at 30 April 2024, all amounts included within the Company profit and loss account were distributable (2023: distributable).
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The following adjustments has been made to comparative balances in the financial statements and notes:
The service charge activities undertaken by Chelsea Cloisters Management Limited have been removed from the consolidation oweing to the fact the assets, liabilities, income and expenses related to these activities are under a statutory trust to the leaseholders of Chelsea Cloisters, rather than the shareholders. This has the following effect on the financial statements:
Consolidated Balance Sheet
Accruals and deferred income (included in creditors due within 1 year) and other debtors (included in debtors due within 1 year) have both increased by £569,965. There is no effect on net assets.
Consolidated Statement of Comprehensive Income
Turnover has decreased by £1,597,816, administrative expenses have decreased by £1,602,781 and interest receivable has decreased by £4,965. There is no effect on profit before tax.
Historic cost balances used for determining the revaluation reserve and deferred tax provisions were previously overstated. The revaluation reserve recognised upon transition to FRS 102 was separately misstated. This had the following effect on the financial statements:
Consolidated Balance Sheet
The revaluation reserve and profit and loss account as at 1 May 2022 has decreased by £229,441 and £2,061,949 respectively. Deferred tax as at 1 May 2022 has increased by £2,291,360. The impact of the above adjustment is a reduction in net assets of £2,291,360 as at 1 May 2022.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £63,568 (2023: £58,597). Contributions of £13,089 (2023: £Nil) were payable to the fund at the balance sheet date.
The Group operates a Defined benefit pension scheme.
The scheme provides benefits based on final salary and length of service on retirement, leaving service or death. The following disclosures exclude any allowance for defined contribution schemes operated by the group.
The scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the group must agree with the Trustees of the scheme the contributions paid to address any shortfall against the Statutory Funding Objective.
The most recent comprehensive actuarial valuation of the scheme was carried out as at 1 February 2022. The below disclosures are based on actuarial advice sought for the purpose of disclosing balances accurate as of 30 April 2024 and transactions accurate for the year to 30 April 2024.
All disclosures in this note are rounded to the nearest £1,000.
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Reconciliation of present value of plan liabilities:
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At the beginning of the year
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Experience gain/(loss) on liabilities
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Changes to demographic assumptions
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Changes to financial assumptions
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Reconciliation of present value of plan assets:
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At the beginning of the year
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Return on assets less interest
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
27.Pension commitments (continued)
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Composition of plan assets:
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Net pension scheme asset reconciliation:
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Fair value of plan assets
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Present value of plan liabilities
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The amounts recognised in profit or loss are as follows:
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Interest income on plan assets
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Interest on asset ceiling
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
27.Pension commitments (continued)
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Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):
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Pension increase (fixed pension increases)
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Pension increase (revaluation in deferment)
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Post-retirement mortality
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PA16 tables with CMI 2023 projections using a long-term improvement rate of 1.25% p.a
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PA16 tables with CMI 2022 projections using a long-term improvement rate of 1.25% p.a.
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50% of members are assumed to take the maximum tax free cash possible
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50% of members are assumed to take the maximum tax free cash possible
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Commitments under operating leases
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At 30 April 2024 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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The Company had no commitments under non-cancellable operating leases at the balance sheet date.
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CHESTERLODGE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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Related party transactions
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The Company has taken advantage of the exemption permitted by Section 33 Related Party Disclosures, not to disclose transactions with wholly owned members of Chesterlodge Group. The address at which the consolidated financial statements are publicly available is Chelsea Cloisters, Sloane Avenue, London, SW3 3DW.
During the year, the group engaged the security consultancy services of Hugh Orde Limited for a total of £96,263 (2023: £102,300). An outstanding balance of £9,399 (2023: £Nil) was due to Hugh Orde Limited as of 30 April 2024. Sir Hugh Orde is a director in some of the Group's subsidiaries.
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Post balance sheet events
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On 20 December 2024, the Group sold 50% of its share capital in Clashindarroch Windfarm Extension Limited, creating a renewable energy joint venture. On 15 November 2024, the Group sold 50% of the increased share capital in Glenfiddich West Limited also creating a renewable energy joint venture. The financial effect for the combined disposals is a gain on disposal of shares of approximately £23m.
At the year end, the company's ultimate contolling party was C J Moran by virtue of his shareholding in the entity.
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