Company registration number 03757421 (England and Wales)
QUEENWOOD GOLF CLUB LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
QUEENWOOD GOLF CLUB LIMITED
COMPANY INFORMATION
Directors
Mr F D Green
Ms L C Green
Mr D O Haythe
Mr J J Moore
Mr G Tvedt
Company number
03757421
Registered office
Stonehill Road
Ottershaw
Surrey
KT16 0AQ
Auditor
Kirk Rice LLP
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
QUEENWOOD GOLF CLUB LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
QUEENWOOD GOLF CLUB LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present the strategic report for the year ended 31 December 2021.
Review of the business
The company continued to operate Queenwood Golf Club to the highest possible standards, both internally in the clubhouse and externally on the golf course, and is now considered an industry leader in the field. Demand for membership at the club house remains healthy and the Club continues to attract high-calibre candidate clients. The Club continues to build capital resources to serve its reinvestment needs and secure its long-term position.
The results of the year and financial position of the company are as shown in the annexed financial statements.
The company's key financial highlights are as follows:
Principal risks and uncertainties
The company's key risk is that of recoverability of membership subscriptions, ensuring that there is enough liquidity to meet its short term obligations and its ability to continue attracting membership candidates. The key risks affecting the company are described in note 18 of the financial statements.
Risk Management
The membership subscriptions are managed in respect of credit and cash flow risk by regular monitoring of the amounts outstanding and continuing to offer the highest possible quality of facilities ensure that there are continuing membership candidates.
Global Pandemic
As with many companies in the UK, significant risks to the business are the widespread outbreak of infectious disease (coronavirus (COVID 19)).
The directors have carried out a robust assessment of the principal risks of the likelihood and consequences of the coronavirus, which can cause disruption of operational activities, impact the well-being of our people and loss of employees. Health and Safety of our staff is our number one priority.
The coronavirus is particularly likely to impact on:
- provision of services - the lack of ability for employees and contractors to move in and out of affected regions could be a significant barrier to service provision, as well as temporary government restrictions on playing golf.
However, golf has been well placed to conform to government legislation on social distancing and outdoor activities. Despite the difficulties, the sport has enjoyed an upsurge of interest globally since the pandemic which bodes well for the coming years
Going Concern
Considering the impact of COVID 19, directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for foreseeable future. For this reason, the Company continues to adopt going concern basis in preparing the financial statements.
QUEENWOOD GOLF CLUB LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Mr G Tvedt
Director
10 October 2022
QUEENWOOD GOLF CLUB LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company in the year under review continued to be that of the operation of Queenwood Golf Club.
Dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr F D Green
Ms L C Green
Mr D O Haythe
Mr J J Moore
Mr G Tvedt
Auditor
Kirk Rice LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
QUEENWOOD GOLF CLUB LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
On behalf of the board
Mr G Tvedt
Director
10 October 2022
QUEENWOOD GOLF CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF QUEENWOOD GOLF CLUB LIMITED
- 5 -
Opinion
We have audited the financial statements of Queenwood Golf Club Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 31 December 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
QUEENWOOD GOLF CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUEENWOOD GOLF CLUB LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Our audit approach was developed by obtaining an understanding of the company’s activities, the key functions undertaken on behalf of the Board by management, and the overall control environment. Based on this understanding we determined an overall materiality and assessed those aspects of the company’s transactions and balances which were most likely to give rise to a material misstatement and were most susceptible to irregularities including fraud or error. Specifically, we identified what we considered to be key audit risks and planned our audit approach accordingly.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with Companies Act 2006 and FRS 102.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
Using the risk assessment, alongside our understanding of the company's business and their control environment, we considered our approach to ensure sufficient coverage was obtained across the entire financial statements. Our tests included, but were not limited to:
- Agreement of the financial statements disclosures to underlying supporting documentation;
- Enquiries of management;
- Considering the effectiveness of
the
control environment in monitoring compliance with laws and regulations.
QUEENWOOD GOLF CLUB LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUEENWOOD GOLF CLUB LIMITED
- 7 -
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
David Forinton
Senior Statutory Auditor
For and on behalf of Kirk Rice LLP
12 October 2022
Statutory Auditor
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
QUEENWOOD GOLF CLUB LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
5,949,264
4,999,850
Cost of sales
(571,443)
(365,291)
Gross profit
5,377,821
4,634,559
Administrative expenses
(4,524,667)
(4,431,718)
Other operating income
178,905
305,826
Operating profit
4
1,032,059
508,667
Interest payable and similar expenses
8
(67,900)
(67,627)
Profit before taxation
964,159
441,040
Tax on profit
9
Profit for the financial year
964,159
441,040
The profit and loss account has been prepared on the basis that all operations are continuing operations.
QUEENWOOD GOLF CLUB LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
10
14,403,258
14,865,703
Current assets
Stocks
11
312,017
298,865
Debtors
12
1,244,377
827,576
Cash at bank and in hand
4,499,615
2,649,504
6,056,009
3,775,945
Creditors: amounts falling due within one year
13
(816,790)
(547,406)
Net current assets
5,239,219
3,228,539
Total assets less current liabilities
19,642,477
18,094,242
Creditors: amounts falling due after more than one year
14
(801,879)
(1,176,847)
Net assets
18,840,598
16,917,395
Capital and reserves
Called up share capital
17
282
275
Share premium
18
12,508,174
11,130,126
Revaluation reserve
18
435
435
Retained earnings
18
6,331,707
5,786,559
Shareholders' funds
18,840,598
16,917,395
The financial statements were approved by the board of directors and authorised for issue on 10 October 2022 and are signed on its behalf by:
Mr G Tvedt
Director
Company Registration No. 03757421
QUEENWOOD GOLF CLUB LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
Called up share capital
Share premium
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 January 2020
274
10,855,923
435
5,574,128
16,430,760
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
-
441,040
441,040
Issue of share capital
17
14
1,810,075
-
-
1,810,089
Conversion of loan to shares
17
(1,518,378)
-
-
(1,518,378)
Redemption of shares
17
(13)
-
(228,609)
(228,622)
Other movements
-
(17,494)
-
-
(17,494)
Balance at 31 December 2020
275
11,130,126
435
5,786,559
16,917,395
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
-
964,159
964,159
Issue of share capital
17
27
3,918,571
-
-
3,918,598
Conversion of loan to shares
17
(2,540,523)
-
-
(2,540,523)
Redemption of shares
17
(20)
-
(419,011)
(419,031)
Balance at 31 December 2021
282
12,508,174
435
6,331,707
18,840,598
QUEENWOOD GOLF CLUB LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
1,147,242
801,157
Interest element of finance lease payments paid
(67,900)
(67,627)
Net cash inflow from operating activities
1,079,342
733,530
Cash flows from investing activities
Purchase of tangible fixed assets
(71,464)
(39,608)
Net cash used in investing activities
(71,464)
(39,608)
Cash flows from financing activities
Proceeds from issue of shares
3,952,775
1,810,089
Redemption of shares
(2,959,554)
(1,764,493)
Payment of finance leases obligations
(150,988)
(216,504)
Net cash generated from/(used in) financing activities
842,233
(170,908)
Net increase in cash and cash equivalents
1,850,111
523,014
Cash and cash equivalents at beginning of year
2,649,504
2,091,874
Effect of foreign exchange rates
34,616
Cash and cash equivalents at end of year
4,499,615
2,649,504
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
1
Accounting policies
Company information
Queenwood Golf Club Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Stonehill Road, Ottershaw, Surrey, KT16 0AQ.
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.
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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Considering the impact of COVID-19, directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for foreseeable future. For this reason, the Company continues to adopt the going concern basis in preparing the financial statements.
true
1.3
Turnover
Turnover represents members' club subscription receivable and other golfing and ancillary income receivable from members and visitors, which is recognised on provision of services. Member's joining fees are recognised on receipt and ongoing membership fees are received in advance and released to the income statement over the relevant period.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
No depreciation is provided for on freehold land
Plant and equipment
10% - 33.3% on cost
Construction costs
2% on cost
Computers
10% - 33.3% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
1.6
Stocks
Stocks are stated at the lower of
average
cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
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
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
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.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in
profit
or
loss
in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter.
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.
1.12
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.
1.13
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.
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, 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, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Subscription income
3,970,968
3,979,194
Golfing & ancillary income
1,978,296
1,020,656
5,949,264
4,999,850
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
5,949,264
4,999,850
2021
2020
£
£
Other revenue
Grants received
178,905
305,826
4
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(76,023)
(50,202)
Government grants
(178,905)
(305,826)
Depreciation of owned tangible fixed assets
391,693
374,067
Depreciation of tangible fixed assets held under finance leases
142,216
142,216
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,650
11,500
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Management
3
3
Operations
68
65
Total
71
68
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
2,565,718
2,426,536
Social security costs
237,166
229,543
Pension costs
98,153
101,856
2,901,037
2,757,935
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
192,080
176,284
8
Interest payable and similar expenses
2021
2020
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
67,900
67,627
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
(Continued)
- 17 -
9
Taxation
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Profit before taxation
964,159
441,040
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
183,190
83,798
Tax effect of expenses that are not deductible in determining taxable profit
3,239
Unutilised tax losses carried forward
(243,871)
(150,296)
Permanent capital allowances in excess of depreciation
57,442
66,498
Taxation charge for the year
-
-
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Construction costs
Computers
Total
£
£
£
£
£
Cost
At 1 January 2021
3,795,251
2,748,201
15,668,352
60,703
22,272,507
Additions
69,700
1,764
71,464
At 31 December 2021
3,795,251
2,817,901
15,668,352
62,467
22,343,971
Depreciation and impairment
At 1 January 2021
1,639,899
5,706,202
60,703
7,406,804
Depreciation charged in the year
220,542
313,367
533,909
At 31 December 2021
1,860,441
6,019,569
60,703
7,940,713
Carrying amount
At 31 December 2021
3,795,251
957,460
9,648,783
1,764
14,403,258
At 31 December 2020
3,795,251
1,108,302
9,962,150
14,865,703
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2021
2020
£
£
Plant and equipment
740,060
882,275
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
11
Stocks
2021
2020
£
£
Finished goods and goods for resale
312,017
298,865
12
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
172,153
184,309
Unpaid share capital
125,072
159,249
Other debtors
12,745
360
Prepayments and accrued income
277,224
134,838
587,194
478,756
2021
2020
Amounts falling due after more than one year:
£
£
Unpaid share capital
657,183
348,820
Total debtors
1,244,377
827,576
13
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Obligations under finance leases
15
130,340
130,340
Trade creditors
226,596
161,267
Taxation and social security
85,242
72,309
Other creditors
233,786
146,875
Accruals and deferred income
140,826
36,615
816,790
547,406
14
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
15
96,926
247,914
Other creditors
704,953
928,933
801,879
1,176,847
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
15
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
130,340
130,340
In two to five years
96,926
247,914
227,266
378,254
16
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
98,153
101,856
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary 'A' of £1 each
2
2
2
2
Redeemable 'B' of $1 each
346
346
211
211
Redeemable 'International' of $1 each
41
41
27
27
Redeemable 'L' of $1 each
9
10
6
7
Redeemable 'N' of $1 each
37
33
23
19
Redeemable 'P' of $1 each
15
15
9
9
Redeemable 'J' of $1 each
4
-
4
-
454
447
282
275
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
17
Share capital
(Continued)
- 20 -
'B', 'L', 'P', 'N', and 'International' shares can be redeemed by the member in accordance with the company's Articles of Association and the regulations of the club. A 'J' share cannot be redeemed except when converted to a 'B' or 'International' share. The 'J' share converts to a 'B' or 'International' share once the 'J' share is fully paid up.
On winding up, the 'B', 'L', 'P', 'N', 'J', and 'International' shares have priority over the 'A' shares. 'B', 'L', 'P', 'N', 'J', and 'International' shareholders will be entitled to a pro-rata amount of the most recent contribution made by a 'B', 'L', 'P', 'N', 'J', and 'International' member respectively and thereafter in the ratio of US$5 per 'B' and 'J' shares to every US$1 per each 'L', 'P', and 'International' shares and US$2.50 per 'N' share.
'A' shareholders are entitled to attend and vote at any general meeting of the company or class meeting of the A member. Whereas 'B', 'L', 'P', 'J' and 'International' shareholders are only entitled to attend and vote at any general meeting where a resolution is proposed:
-
to wind up the company;
-
to open the company's golf facilities to the public on a continuous basis;
-
for the mandatory purchases by Members of debentures or to approve the terms of such debentures;
-
to sell all or substantially all of the assets of the company; or
-
to increase the maximum amount of the discount.
During the year, as part of the changes to the members at the club, there were several share allotments and redemptions.
Share allotments during the year included 20 $1 B shares, 4 $1 N shares, 2 $1 P shares, 2 $1 I shares, and 4 $1 J shares. The P shares were issued for a consideration, including share premium, of $70,000 whilst all other shares were issued for a consideration of $200,000 each.
Share redemptions during the year comprised 20 $1 B shares, 2 $1 P shares, 1 $1 L share and 2 $1 I shares. The P shares were redeemed for $70,000 each whilst all other shares were redeemed for $200,000 each.
18
Reserves
Share premium
Share premium represents the excess of proceeds received over the nominal value of new shares issued less payments made for the redemption of shares financed wholly by a new issue of shares. The redemption amount is further reduced to the extent that the company can make a permissible capital payment.
Share capital
Share capital represents the nominal value of shares that have been issued.
Retained earnings
Retained earnings represent undistributed cumulative earnings.
19
Related party transactions
During the year, one of the directors charged £53,317 (2020: £6,008) to the company in respect of travel and business expenses.
At 31 December 2021, the company owed £704,953 (2020: £928,933) to one of the directors in relation to the acquisition of the controlling interest 'A' shares for the Board of Directors. This amount is included within other creditors. The director was paid £223,980 (2020: £233,591) in respect of this balance during the year.
QUEENWOOD GOLF CLUB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
20
Ultimate controlling party
The ultimate controlling party is Mr F. D. Green.
The immediate parent company is Queenwood Development Group LLC who are registered in the United States of America.
21
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
964,159
441,040
Adjustments for:
Finance costs
67,900
67,627
Depreciation and impairment of tangible fixed assets
533,909
516,283
Foreign exchange gains on cash equivalents
-
(34,616)
Movements in working capital:
Increase in stocks
(13,152)
(13,921)
(Increase)/decrease in debtors
(450,978)
305,382
Increase/(decrease) in creditors
45,404
(480,638)
Cash generated from operations
1,147,242
801,157
22
Analysis of changes in net debt
2021
£
Opening net funds/(debt)
Cash at bank and in hand
2,649,504
Obligations under finance leases
(378,254)
2,271,250
Changes in net debt arising from:
Cash flows of the entity
2,001,099
Closing net funds/(debt) as analysed below
4,272,349
Closing net funds/(debt)
Cash at bank and in hand
4,499,615
Obligations under finance leases
(227,266)
4,272,349
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