Registration number:
Cooling Castle Barn Limited
for the Year Ended 30 October 2021
Cooling Castle Barn Limited
Contents
Company Information |
|
Strategic Report |
|
Director's Report |
|
Statement of Director's Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Cooling Castle Barn Limited
Company Information
Director |
Ms Rebecca Collins |
Company secretary |
Mr Paul Collins |
Registered office |
|
Auditors |
|
Cooling Castle Barn Limited
Strategic Report for the Year Ended 30 October 2021
The director presents her strategic report for the year ended 30 October 2021.
Principal activity
The principal activity of the company is the provision of wedding and event venues and ancillary services
Fair review of the business
Impact from the risks related to the Covid-19 pandemic
At the start of the financial year until 18th July 2021, Cooling Castle Barn continued to be heavily impacted by government legislated closures related to COVID-19. During this time revenue was down 88% in comparison to the same period pre COVID (November 2018-July 2019).
From 19th July 2021 until the year end, Cooling Castle Barn made massive strides in returning to business as usual. In the final full quarter of the year, there was a return to profitability.
A lasting impact has been the depressed sales of new weddings to new clients during these venue closures. We have worked to improve the forward order book with a focused marketing campaign and investments in the property external aesthetics.
Looking forward, the business will make a strong return in revenue & profitability in the next financial year. The headwinds of weakening consumer confidence, increased operating costs & inflation will negatively impact Cooling Castle Barn in the medium term. Where possible, this will be mitigated by cost efficiencies and technology implementation. The Cbils loan was repaid in November 2021.
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2021 |
2020 |
Turnover |
£ |
1,606,948 |
3,914,106 |
Profit before tax |
£ |
299,587 |
80,965 |
Staff numbers |
84 |
105 |
The company monitors staff numbers to adapt for seasonal or other business requirements.
Principal risks and uncertainties
The company's financial instruments comprise bank balances and trade creditors, the main purpose being to finance the company's trading operations.
The company has a payment policy which ensures that sales income is received according to a set timescale before the event is due to take place. Deposits are also taken on booking and these are refundable on a discretionary basis should the event be cancelled.
Cashflow management is reviewed regularly to ensure that the company has sufficient balances to meet trade creditors, payroll costs and tax liabilities as they fall due.
Cooling Castle Barn Limited
Strategic Report for the Year Ended 30 October 2021
Approved and authorised by the
......................................... |
Cooling Castle Barn Limited
Director's Report for the Year Ended 30 October 2021
The director presents her report and the financial statements for the year ended 30 October 2021.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditors
The director has taken steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that she knows of and of which she knows the auditors are unaware.
Approved and authorised by the
......................................... |
Cooling Castle Barn Limited
Statement of Director's Responsibilities
The director acknowledges her responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Cooling Castle Barn Limited
Independent Auditor's Report to the Members of Cooling Castle Barn Limited
Opinion
We have audited the financial statements of Cooling Castle Barn Limited (the 'company') for the year ended 30 October 2021, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 30 October 2021 and of its profit for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Cooling Castle Barn Limited
Independent Auditor's Report to the Members of Cooling Castle Barn Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors' remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities [set out on page 5], the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Cooling Castle Barn Limited
Independent Auditor's Report to the Members of Cooling Castle Barn Limited
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
Audit response to risks identified
• The nature of the industry and sector, control environment and business performance including the design of the Company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• results of our enquiries of management about their own identification and assessment of the risks of irregularities and any matters we identified having reviewed the Company’s policies and procedures;
• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in and focused on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and local tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material fine or penalty.
Audit response to risks identified
As a result of performing the above, we identified revenue recognition as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management, concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• obtaining an understanding of provisions and discussing with management to understand the basis of recognition or non-recognition of tax provisions; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
Cooling Castle Barn Limited
Independent Auditor's Report to the Members of Cooling Castle Barn Limited
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
Audit response to risks identified
• The nature of the industry and sector, control environment and business performance including the design of the Company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
• results of our enquiries of management about their own identification and assessment of the risks of irregularities and any matters we identified having reviewed the Company’s policies and procedures;
• the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in and focused on those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and local tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material fine or penalty.
Audit response to risks identified
As a result of performing the above, we identified revenue recognition as a key audit matter related to the potential risk of fraud. Our procedures to respond to risks identified included the following:
• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• enquiring of management, concerning actual and potential litigation and claims;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• obtaining an understanding of provisions and discussing with management to understand the basis of recognition or non-recognition of tax provisions; and
• in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
76 Canterbury Innovation Centre
University Road
Kent
CT2 7FG
Cooling Castle Barn Limited
Profit and Loss Account for the Year Ended 30 October 2021
Note |
2021 |
2020 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
347,972 |
183,440 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(48,385) |
(102,475) |
||
Profit before tax |
|
|
|
Tax on profit |
|
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Cooling Castle Barn Limited
Statement of Comprehensive Income for the Year Ended 30 October 2021
2021 |
2020 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Cooling Castle Barn Limited
(Registration number: 03541153)
Balance Sheet as at 30 October 2021
Note |
2021 |
2020 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
1,261 |
1,261 |
|
Retained earnings |
4,240,612 |
4,066,056 |
|
Shareholders' funds |
4,241,873 |
4,067,317 |
Approved and authorised by the
......................................... |
Cooling Castle Barn Limited
Statement of Changes in Equity for the Year Ended 30 October 2021
Share capital |
Retained earnings |
Total |
|
At 31 October 2020 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 October 2021 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 May 2019 |
|
|
|
Prior period adjustment |
- |
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 October 2020 |
|
|
|
Cooling Castle Barn Limited
Statement of Cash Flows for the Year Ended 30 October 2021
Note |
2021 |
(As restated) |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Loss from disposals of investments |
- |
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
( |
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in other debtors |
|
( |
|
Increase in trade creditors |
|
|
|
(Increase) in amounts owed by group undertakings |
- |
(40,299) |
|
Cash generated from operations |
|
( |
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Dividend income |
- |
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
|
|
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
|
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 31 October |
|
|
|
Cash and cash equivalents at 30 October |
2,497,458 |
926,237 |
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
UK
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Key sources of estimation uncertainty
Tangible Fixed Assets
The company has recognised tangible fixed assets.These assets are stated at their cost less provision for depreciation and impairment. The company’s accounting policy sets out the approach to calculating depreciation for immaterial assets acquired. For material assets such as land and buildings the company determines at acquisition reliable estimates for the useful life of the asset, its residual value and related disposal costs. These estimates are based upon such factors as the expected use of the acquired asset and market conditions. At
subsequent reporting dates the directors consider whether there are any factors such as changes in
market conditions that indicate a need to reconsider the estimates used. Where there are indicators that
the carrying value of tangible assets may be impaired the company undertakes tests to determine the
recoverable amount of assets. These tests require estimates of the fair value of assets less cost to sell
and of their value in use.. The carrying amount is £1,406,425 (2020 -£1,465,574).
Deferred tax
Provision has been made in the financial statements for deferred tax at 31 October (note 18). This provision is based upon estimates of future taxable profits, the anticipated reversal of timing differences and the tax rates that will be in force at that time.. The carrying amount is £68,847 (2020 -£78,283).
Critical areas of judgment:
Lease commitments
The company has entered into a range of lease commitments in respect of property, plant and equipment. The classification of these leases as either financial or operating leases requires the directors to consider whether the terms and conditions of each lease are such that the company has acquired the risks and rewards associated with the ownership of the underlying assets.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold property |
2% straight line |
Tenant's improvements to property |
2% straight line or over lease term |
Plant and machinery |
15% reducing balance |
Motor vehicles |
25% reducing balance |
Fixtures and fittings |
15% reducing balance |
Office equipment |
15% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Rendering of services |
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Government grants |
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Gain/loss on disposal of property, plant and equipment |
|
- |
Gain/loss from disposals of investments |
- |
( |
3,353 |
(10) |
Operating profit |
Arrived at after charging/(crediting)
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Depreciation expense |
|
|
Operating lease expense - other |
6,974 |
9,572 |
Profit on disposal of property, plant and equipment |
( |
- |
Government grants |
Medway Council covid local authority grants £75,928 (2020: nil)
Kickstarter training grants £28,842 (2020: nil)
Coronavirus job retention scheme grants £344,452 (2020: £459,265)
The amount of grants recognised in the financial statements was £
Other interest receivable and similar income |
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Interest income on bank deposits |
|
|
Dividend income |
- |
|
Other finance income |
- |
|
|
|
Interest payable and similar expenses |
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
- |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Other short-term employee benefits |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2021 |
2020 |
|
Administration and support |
|
|
|
|
Director's remuneration |
The directors' remuneration for the year was as follows:
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Remuneration |
|
|
Auditors' remuneration |
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Audit of the financial statements |
|
|
Taxation |
Tax charged/(credited) in the income statement
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Year ended 30 October 2021 |
1 May 2019 to 30 October 2020 |
|
Current taxation |
||
UK corporation tax |
- |
|
Deferred taxation |
||
Arising from changes in tax rates and laws |
( |
( |
Tax receipt in the income statement |
( |
( |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2021 |
2020 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of revenues exempt from taxation |
- |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
( |
|
Deferred tax credit from unrecognised tax loss or credit |
( |
( |
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Tax increase from changes in tax provisions due to legislation |
- |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
- |
( |
Total tax credit |
( |
( |
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
Total |
|
Cost or valuation |
|||||
At 31 October 2020 |
|
|
|
|
|
Additions |
|
|
- |
|
|
Disposals |
- |
( |
( |
- |
( |
At 30 October 2021 |
|
|
|
|
|
Depreciation |
|||||
At 31 October 2020 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
( |
At 30 October 2021 |
|
|
|
|
|
Carrying amount |
|||||
At 30 October 2021 |
|
|
|
|
|
At 30 October 2020 |
|
|
|
|
|
Included within the net book value of land and buildings above is £884,293 (2020 - £901,171) in respect of freehold land and buildings and £141,935 (2020 - £139,535) in respect of short leasehold land and buildings.
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Stocks |
30 October 2021 |
30 October 2020 |
|
Other inventories |
|
|
Debtors |
Current |
Note |
2021 |
2020 |
Trade debtors |
|
- |
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Income tax asset |
|
- |
|
|
|
Cash and cash equivalents |
30 October 2021 |
30 October 2020 |
|
Cash at bank |
|
|
Short-term deposits |
|
|
Other cash and cash equivalents |
|
|
|
|
|
Bank overdrafts |
( |
( |
Cash and cash equivalents in statement of cash flows |
2,497,458 |
926,237 |
Creditors |
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Note |
30 October 2021 |
30 October 2020 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
Accrued expenses |
|
|
|
Gross amount due to customers for contract work |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 31 October 2020 |
|
|
Increase (decrease) in existing provisions |
( |
( |
At 30 October 2021 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,161 |
|
1,111 |
|
|
100 |
|
100 |
|
- |
- |
|
50 |
|
|
|
|
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Loans and borrowings |
30 October 2021 |
30 October 2020 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
|
30 October 2021 |
30 October 2020 |
|
Current loans and borrowings |
||
Bank borrowings |
|
|
Bank overdrafts |
|
|
|
|
Bank borrowings
Secured via a first legal mortgage over the freehold property known as Cooling Castle Barns, Cooling, Rochester, Kent, ME3 8DT |
The loan is secured via a first legal mortgage over the freehold property known as Cooling Castle Barns, Cooling, Rochester, Kent, ME3 8DT |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Dividends |
Interim dividends paid
2021 |
2020 |
|||
Interim dividend of £
|
|
|
||
Interim dividend of £
|
|
- |
||
Interim dividend of £
|
|
|
||
|
|
Related party transactions |
Key management personnel
Ellen Adams, an employee
Summary of transactions with key management
Cooling Castle Barn Limited
Notes to the Financial Statements for the Year Ended 30 October 2021
Other transactions with the director |
Mr & Mrs Collins owe the company £192,634 as at 30.10.2021.
Summary of transactions with subsidiaries
Peapod Portfolio Ltd A loan is owed by Peapod Portfolio Ltd to the company The outstanding balance on the loan as at the year end is £305,915 (2020: £312,578) |
The Vines of Rochester Ltd A loan is owed by The Vines of Rochester Ltd to the company. The outstanding balance on the loan as at the year end is £4,623,215 (2020: £4,473,565) |
Parent and ultimate parent undertaking |
The company's immediate parent is