Company registration number 04337609 (England and Wales)
SANGUINE HOSPITALITY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
SANGUINE HOSPITALITY LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 6
SANGUINE HOSPITALITY LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
4
108,661
108,661
Current assets
Debtors
5
2,312
87,885
Cash at bank and in hand
43
80
2,355
87,965
Creditors: amounts falling due within one year
6
(1,476,967)
(1,434,392)
Net current liabilities
(1,474,612)
(1,346,427)
Total assets less current liabilities
(1,365,951)
(1,237,766)
Creditors: amounts falling due after more than one year
7
(40,000)
(40,000)
Net liabilities
(1,405,951)
(1,277,766)
Capital and reserves
Called up share capital
6,667
6,667
Share premium account
49,200
49,200
Profit and loss reserves
(1,461,818)
(1,333,633)
Total equity
(1,405,951)
(1,277,766)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
SANGUINE HOSPITALITY LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2022
31 March 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 28 April 2023 and are signed on its behalf by:
Mr A R Matthews-Williams
Director
Company Registration No. 04337609
SANGUINE HOSPITALITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
1
Accounting policies
Company information
Sanguine Hospitality Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Plaza, 100 Old Hall Street, Liverpool, L3 9QJ.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in existence for the foreseeable future. However, the director is aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern. The company is currently in dispute with other parties over the reimbursement of development costs incurred by Sanguine Hospitality Limited some of which have been reimbursed and others not. There are also disputes outstanding on completed projects over the allocation of sale proceeds between participating members and delays and disputes in realising development profits for distribution to members. The company expects these disputes to be settled in its favour but the timescale for resolution remains unclear.
1.3
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:
Fixtures, fittings & equipment
20% straight line
Computer equipment
20% straight line
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.
1.4
Fixed asset investments
Interests in associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
SANGUINE HOSPITALITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
Financial instruments
Basic financial assets
Basic financial assets, which include debtors 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.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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 payments 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled. During the year a loan debt due to a related company was written off.
1.7
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 leases asset are consumed.
1.8
Government grants
Government grants are recognised at the fair value of the asset received 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.
SANGUINE HOSPITALITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2021 and 31 March 2022
15,049
Depreciation and impairment
At 1 April 2021 and 31 March 2022
15,049
Carrying amount
At 31 March 2022
At 31 March 2021
4
Fixed asset investments
2022
2021
£
£
Shares in group undertakings and participating interests
71,511
71,511
Loans
37,150
37,150
108,661
108,661
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
2,312
87,885
SANGUINE HOSPITALITY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
6
Creditors: amounts falling due within one year
2022
2021
£
£
Amounts owed to group undertakings
129,480
620,659
Taxation and social security
10,337
Other creditors
1,347,487
803,396
1,476,967
1,434,392
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Other creditors
40,000
40,000
8
Financial commitments, guarantees and contingent liabilities
The company had given security over its interest in Dominions House Limited and WB Developments LLP in respect of all amounts owing in respect of the development project being undertaken by Dominions House Limited. A claim was made against the company in the sum of £660,025 based on this security, however the plaintiff had substantially amended the underlying loan documentation rendering the security null and void in the opinion of the company. To date the Court has rejected the plaintiffs application to wind up the company on the basis that substantial cross claims exist in respect of the disputed amount and its calculation. No provision has been made in respect of the potential outcome of this claim and the counterclaims due to the uncertainty involved.