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Financial Statements for the Year Ended 30 November 2019 |
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Scafell Hotel Limited |
REGISTERED NUMBER:
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Financial Statements for the Year Ended 30 November 2019 |
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for |
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Scafell Hotel Limited |
Scafell Hotel Limited (Registered number: 00482705) |
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Contents of the Financial Statements |
for the year ended 30 November 2019 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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Scafell Hotel Limited |
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Company Information |
for the year ended 30 November 2019 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Brooke's Mill |
Armitage Bridge |
Huddersfield |
West Yorkshire |
HD4 7NR |
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SOLICITORS: |
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Oakley House |
1 Hungerford Road |
Huddersfield |
HD3 3AL |
Scafell Hotel Limited (Registered number: 00482705) |
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Balance Sheet |
30 November 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks |
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Debtors | 5 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 6 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
7 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Revaluation reserve | 9 |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
Scafell Hotel Limited (Registered number: 00482705) |
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Balance Sheet - continued |
30 November 2019 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Scafell Hotel Limited (Registered number: 00482705) |
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Notes to the Financial Statements |
for the year ended 30 November 2019 |
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1. | STATUTORY INFORMATION |
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Scafell Hotel Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The financial statements have been prepared on a going concern basis which assumes that the company will have sufficient funding available to enable it to continue to operate for the foreseeable future. |
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The company has net current liabilities of £404,000 and meets its day to day working capital requirements from a short term financing loan, a long term bank loan, a bank overdraft facility and loans from the directors. The seasonal nature of the company's business is such that there can be significant variation in the timing of cash flows and consequently the margin of available cash resources over requirements is not large. |
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Subsequent to the year end, and prior to the date of approval of these financial statements, the Coronavirus restrictions imposed in the UK meant that the hotel was required to close during the period of lockdown. The hotel, along with its bar and restaurant, reopened in July 2020. During the period of lockdown the company has been able to obtain government support through the furlough scheme and other available grants. |
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The directors have considered the cash flow requirements of the company for the next 12 months and are confident that the company will have sufficient available funds in place in order to operate satisfactorily.. |
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On this basis, the directors consider it appropriate to prepare the accounts on a going concern basis. The financial statements do not include any adjustments that would result from a withdrawal of the company's current bank and financing facilities or a withdrawal of the directors' continued financial support, or if the directors are unable to secure the required additional working capital funding.. |
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Significant judgements and estimates |
There are no material judgements made by the directors, in the application of these accounting policies that are expected to have a significant effect on the financial statements or any estimates with a significant risk of material adjustment in the next year. |
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Revenue |
Revenue represents sales (excluding VAT and similar taxes) of goods and services, net of discounts, provided in the normal course of business and recognised when services have been rendered. |
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Revenue is primarily derived from hotel operations, including the rental of rooms and food and beverage sales. Revenue is recognised when rooms are occupied and food and beverages are sold. |
Scafell Hotel Limited (Registered number: 00482705) |
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Notes to the Financial Statements - continued |
for the year ended 30 November 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Fixtures, fittings and equipment | - |
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Tangible fixed assets are initially recognised at purchase cost. Fixtures, fittings and equipment are subsequently measured at cost less accumulated depreciation, based on the useful lives of those assets. |
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Freehold land and buildings are subsequently measured at fair value and are carried at a revalued amount, which is usually market value which has been determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers. No depreciation is provided on freehold land and buildings. This is on the basis that depreciation is not material on the company's freehold property due to a long useful economic life, a high residual value and regular revaluations. The property is subject to regular maintenance and repair, the costs of which are charged to the profit and loss account, so that the property maintains a high performance standard. |
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An impairment review is performed annually on the property at the end of each accounting period where no depreciation has been charged due to immateriality where the estimated residual value is not markedly different from the carrying value. |
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Stocks |
Stocks have been taken and valued at the lower of cost and net realisable value by a firm of hotel and brewery stocktakers and valuers. |
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Financial instruments |
Cash and cash equivalents |
Cash and cash equivalents in the balance sheet comprise cash at banks, bank overdrafts and cash in hand. |
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Short-term debtors and creditors |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses. |
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Bank and other borrowings |
Bank and other borrowings are initially recognised at the fair value of the consideration received less directly attributable transaction costs. They are subsequently measured at amortised cost. Finance charges, including the transaction costs are charged to the income statement using the effective interest rate method. |
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Borrowings are classified as non-current when the repayment date is more than 12 months from the period-end date or where they are drawn on a facility with more than 12 months to expiry. |
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Scafell Hotel Limited (Registered number: 00482705) |
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Notes to the Financial Statements - continued |
for the year ended 30 November 2019 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the period comprises, where relevant, current and deferred tax. Tax charges and credits are recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax is recognised in respect of all timing differences which are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements, except that unrelieved tax losses and other deferred tax assets are recognised only to the extent that the directors consider that it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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Pension costs and other post-retirement benefits |
The company makes contributions to defined contribution pension schemes for its employees. Contributions are charged to the income statement in the period to which they relate. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Scafell Hotel Limited (Registered number: 00482705) |
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Notes to the Financial Statements - continued |
for the year ended 30 November 2019 |
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4. | TANGIBLE FIXED ASSETS |
Fixtures, |
fittings |
Land and | and |
buildings | equipment | Totals |
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COST OR VALUATION |
At 1 December 2018 |
and 30 November 2019 |
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DEPRECIATION |
At 1 December 2018 |
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Charge for year |
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At 30 November 2019 |
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NET BOOK VALUE |
At 30 November 2019 |
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At 30 November 2018 |
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Cost or valuation at 30 November 2019 is represented by: |
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Fixtures, |
fittings |
Land and | and |
buildings | equipment | Totals |
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Valuation in 2003 | 1,150,000 | 50,000 | 1,200,000 |
Valuation in 2008 | 950,000 | 100,000 | 1,050,000 |
Valuation in 2011 | (437,000 | ) | 187,000 | (250,000 | ) |
Valuation in 2017 | 317,000 | (117,000 | ) | 200,000 |
Cost | - | 7,661 | 7,661 |
1,980,000 | 227,661 | 2,207,661 |
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If tangible fixed assets had not been revalued they would have been included at the following historical cost: |
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2019 | 2018 |
£ | £ |
Cost | 1,413,206 | 1,413,206 |
Aggregate depreciation | 929,320 | 881,082 |
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Freehold property and fixtures were valued on an open market basis on 30 September 2017 by Colliers Int'l Property Consultants Ltd . |
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The freehold property, including equipment and fixtures & fittings, were valued as a fully equipped operational entity on the basis of open market value for existing use at a valuation of £2,200,000. |
Scafell Hotel Limited (Registered number: 00482705) |
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Notes to the Financial Statements - continued |
for the year ended 30 November 2019 |
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5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
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Other debtors |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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Included within other creditors is a loan from Mr WM Jessop amounting to £332,940 (2018: £135,454). This loan is unsecured and interest free. There is no formal repayment date for this loan, however, Mr Jessop has indicated that he does not intend to require repayment until such time as the company has sufficient cash resources to repay the loan without this having an adverse effect on the company's day to day operations. |
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Also included in other creditors is a loan from a third party of £8,000 (2018: £Nil) - this loan is unsecured and repayable on demand. This loan has been repaid subsequent to the year end. |
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Details of bank loans are set out in note 9. |
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7. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2019 | 2018 |
£ | £ |
Bank loans |
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Other creditors |
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Amounts falling due in more than five years: |
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Repayable by instalments |
Bank loan | - | 193,485 |
Scafell Hotel Limited (Registered number: 00482705) |
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Notes to the Financial Statements - continued |
for the year ended 30 November 2019 |
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8. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2019 | 2018 |
£ | £ |
Bank overdrafts |
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Bank loans |
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Other loans |
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The company has a term loan and overdraft from its principal banker. |
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The overdraft amounts to £27,256 and is due for repayment on demand. The loan amounts to £1,106,468. This is repayable in equal quarterly instalments of £24,663 for 5 years, after which the balance of the loan is fully repayable. Interest on the loan is charged at a rate of 2.75% over 3 month LIBOR. The loan is secured by a first charge over the company's freehold property. |
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The company has a working capital loan of £85,734 from a financing company. This is repayable as a fixed percentage of future cash receipts from takings and, whilst there are no fixed dates for repayment, it is expected that this loan will be repaid within the next 12 months. Interest on the loan is charged at a fixed rate of 23% per annum. |
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The company also has a loan from a third party of £500,000. Interest accrues on this loan at the rate of 4.5% above the base rate of Barclays Bank plc. The loan is repayable in October 2024. The loan is secured by way of a director's personal guarantee. |
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9. | RESERVES |
Revaluation |
reserve |
£ |
At 1 December 2018 |
and 30 November 2019 |
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10. | RELATED PARTY DISCLOSURES |
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The company has a loan amounting to £332,940 (2018: £135,454) from one of its directors and its majority shareholder, Mr WM Jessop. This loan is unsecured and interest free. There is no formal repayment date for this loan, however, Mr Jessop has indicated that he does not intend to require repayment until such time as the company has sufficient cash resources to repay the loan without this having an adverse effect on the company's day to day operations. |