Company Registration No. 03031801 (England and Wales)
BENCHMARK LEISURE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
PAGES FOR FILING WITH REGISTRAR
BENCHMARK LEISURE LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
BENCHMARK LEISURE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2019
30 June 2019
- 1 -
2019
2018
Notes
£
£
£
£
Non-current assets
Investment properties
3
9,677,958
10,281,888
Current assets
Inventories
897,704
273,000
Trade and other receivables
4
1,770,210
520,877
Cash and cash equivalents
29,354
48,618
2,697,268
842,495
Current liabilities
5
(14,626,101)
(12,310,133)
Net current liabilities
(11,928,833)
(11,467,638)
Total assets less current liabilities
(2,250,875)
(1,185,750)
Provisions for liabilities
6
(347,750)
(347,750)
Net liabilities
(2,598,625)
(1,533,500)
Equity
Called up share capital
7
1,000
1,000
Capital redemption reserve
100
100
Retained earnings
(2,599,725)
(1,534,600)
Total equity
(2,598,625)
(1,533,500)
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 September 2020 and are signed on its behalf by:
R J B Duce
Director
Company Registration No. 03031801
BENCHMARK LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2019
- 2 -
1
Accounting policies
Company information
Benchmark Leisure Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office
and business address
is
at Rock House, Great Casterton Road, Stamford, Lincs, PE9 2YQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit and loss of the group.
The financial statements of the company are consolidated in the financial statements of
Abbey Commercial Investments Limited.
These consolidated financial statements are available from its registered office,
Devonshire House, 1 Devonshire Street, London, W1W 5DR.
1.2
Going concern
T
true
he directors have reasonable expectation that
with the continued support of the company's parent entity, Abbey Commercial Investments Limited, the company has adequate resources to continue in operational existence for the foreseeable future and thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
Rental income is recognised in the income statement on a straight-line basis over the term of the lease. Lease incentives being offered to occupiers to enter into a lease, such as an initial rent-free period or a cash contribution to fit out or similar costs, are an integral part of the net consideration for the use of the property and are therefore recognised on the same straight-line basis.
Proceeds received on the sale of trading properties are recognised when control of the property transfers to the buyer, i.e. the buyer has the ability to direct the use of the property and the right to the cash inflows and outflows generated by it. This generally occurs on unconditional exchange or on completion.
1.4
Investment properties
The company's properties are held for long-term investment. Investment properties are accounted for as follows:-
BENCHMARK LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 3 -
1.5
Impairment of non-current assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.6
Inventories
Inventories comprise land and buildings held for development and are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises the original purchase price and
associated costs and those overheads that have been incurred in bringing the inventories to their present
condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability of another entity. They are recognised in the company's balance sheet when the company 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.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method 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.
Financial assets classified as receivable within one year are not amortised.
BENCHMARK LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 4 -
Classification of 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables and loans from
fellow group companies that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
A deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits which the future reversal of the underlying timing differences can be deducted.
1.10
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
BENCHMARK LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
1
Accounting policies
(Continued)
- 5 -
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
There were no employees (excluding the directors) during the year (2018: nil).
3
Investment property
2019
£
Fair value
At 1 July 2018
10,281,888
Additions
638,026
Transfers
(455,549)
Disposals
(430,754)
Revaluations in year
(355,653)
At 30 June 2019
9,677,958
Investment properties have been valued on an open market basis at 30 June 2019 by the directors of the company.
The historical cost of the company’s investment properties held at 30 June 2019 was £10,291,879 (2018: £10,540,156).
4
Trade and other receivables
2019
2018
Amounts falling due within one year:
£
£
Trade receivables
135,209
112,030
Corporation tax recoverable
908
908
Amounts owed by group undertakings
373,009
-
Other receivables
1,261,084
407,939
1,770,210
520,877
BENCHMARK LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 6 -
5
Current liabilities
2019
2018
£
£
Trade payables
823,194
1,076,987
Amounts owed to group undertakings
12,510,790
9,838,850
Other payables
1,292,117
1,394,296
14,626,101
12,310,133
6
Provisions for liabilities
2019
2018
£
£
Deferred tax liabilities
347,750
347,750
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary Shares of £1 each
1,000
1,000
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Stephen Simou FCA.
The auditor was Citroen Wells.
9
Financial commitments, guarantees and contingent liabilities
The company is party to an omnibus letter of set off with other group undertakings in favour of Lloyds Bank Plc.
The company has granted a fixed charge over certain of its assets and undertakings as security against banking facilities made available to Scarborough Water Park Hotel Limited ('SWPHL'), a fellow subsidiary undertaking.
On the sale of a development held by SWPH
L,
the company has an obligation to ring fence £1.498m to continue the redevelopment of north bay Scarborough as part of its joint venture with Scarborough Borough Council. As a result, there will be a receivable due from SWPH
L
to cover this obligation. In addition, this is contingent on profits being made on the sale of the development which
i
s uncertain at this time.
BENCHMARK LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2019
- 7 -
10
Events after the reporting date
The World Health Organization declared the Coronavirus (COVID-19) outbreak a pandemic on 11 March 2020. The pandemic, and the measures to control its human impact, have resulted in disruptions to economic activity and business operations worldwide, the outcome of which is still uncertain.
At the date of approval of the financial statements, the full impact of the virus is inherently uncertain, and the directors are therefore unable to determine a reliable estimate of the financial impact of COVID-19 on the Company’s profitability, liquidity and financial position in the future. However, the director
s are pleased to report that the Group has continued to receive strong support from their lenders throughout the crisis and they believe that the company is as well placed as it can be
to withstand the uncertainties ahead and to profit from the changes in retail requirements on the High Street and in the residential housing market as the economy recovers
.
11
Related party transactions
One of the directors is a director and has an interest in Strategic Resources Limited ('Strategic'). At the year end there was £136,277 owed to the company by Strategic (2018: £95,416).
One of the directors is a director and has an interest in Thurgarton Priory Estates Limited ('Thurgarton'). At the year end there was £10,000 owed to the company by Thurgarton (2018: £10,000).
At the year end, one of the directors of the company owed £3,632 (2018: £3,632) to the company. The amount is interest-free, unsecured and repayable on demand.
No disclosure has been made of transactions with other wholly owned group companies in accordance with FRS 102 Section 33, paragraph 33.1A as the company is itself a wholly owned subsidiary of Abbey Commercial Investments Limited.
12
Parent company
The company's parent undertaking is Abbey Commercial Investments Limited, a company incorporated in England and Wales.