Company Registration No. 05963712 (England and Wales)
NEWTON HALL (NORTHUMBERLAND) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2018
NEWTON HALL (NORTHUMBERLAND) LIMITED
COMPANY INFORMATION
Director
D Fisher
Secretary
A J Fisher
Company number
05963712
Registered office
The Apartment Group 1st Floor, Two
Jesmond Three Sixty
Newcastle upon Tyne
NE2 1DB
Auditor
RMT Accountants & Business Advisors Ltd
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Business address
Newton Hall
Newton-By-The-Sea
Alnwick
Northumberland
NE66 3DZ
NEWTON HALL (NORTHUMBERLAND) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
NEWTON HALL (NORTHUMBERLAND) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2018
- 1 -
The director presents the strategic report for the year ended 31 July 2018.
Principal activity
The principal activity of the company is the provision of hotel and conferencing facilities, the operation of a bar and restaurant as well as the operation of caravan sites and holiday cottages.
Financial performance, financial position and key performance indicators
The director considers turnover, gross profit and EBITDA (earnings before interest, tax, depreciation and amortisation) to be the key measures of the company's performance:
The balance sheet shows that the company net assets have increased to £3,348,464 (2017 - £2,484,628).
The company invested £348,237 in fixed assets over the period and made net repayments of £137,267 to their borrowings. The director considers the company's financial performance and position to be satisfactory in the light of current trading conditions.
Fixed assets
In the opinion of the director, the value of the company's land and buildings are not materially in excess of that shown in the financial statements when considered in relation to its use in the company's trade.
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The board reviews these risks and puts in place policies to mitigate them.
The key business and financial risks are:
Employees
The company's performance depends largely on some key employees. The company provides competitive remuneration packages to ensure key employees are both retained and incentivised.
Environment, health and safety incidents
Appropriate measures are implemented to ensure the risk of any environmental and health and safety issues are minimised.
Liquidity risk
The director regularly monitor
s
the financial information to ensure that any risks in this area are considered on a timely basis.
Credit risk
The director regularly monitors debtors to ensure that any risks of bad and doubtful debts are provided for on a timely basis.
Brexit risk
The UK's decision to leave the European Union continues to generate a significant level of uncertainty in the economy. The director regularly assesses the likely effects on company revenue and profitability in an attempt to mitigate the risk as far as possible.
NEWTON HALL (NORTHUMBERLAND) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 2 -
Future developments
The director believes that the company is well placed in terms of strategic and market position to maximise its ability to generate sales and satisfy customer demand, in spite of the difficult economic conditions currently facing the business.
D Fisher
Director
Approved by the board on 29 April 2019
NEWTON HALL (NORTHUMBERLAND) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 JULY 2018
- 3 -
The director presents his annual report and financial statements for the year ended 31 July 2018.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
D Fisher
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £250,000. The director does not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that RMT Accountants & Business Advisors Ltd be reappointed as auditor of the company will be put at a General Meeting.
Statement of director's responsibilities
The director is responsible 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 he 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 then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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 them to ensure that the financial statements comply with the Companies Act 2006. He 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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of
future developments.
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 director
has
taken all the necessary steps that they ought to have taken as director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
NEWTON HALL (NORTHUMBERLAND) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 4 -
On behalf of the board
D Fisher
Director
29 April 2019
NEWTON HALL (NORTHUMBERLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF NEWTON HALL (NORTHUMBERLAND) LIMITED
- 5 -
Opinion
We have audited the financial statements of Newton Hall (Northumberland) Limited (the 'company') for the year ended 31 July 2018 which comprise the profit and loss account, 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 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 FRS 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 July 2018 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.
The impact of uncertainties due to the United Kingdom exiting the European Union on our audit
Brexit is one of the most significant economic events for the UK in recent history, and at the date of this report its effects are subject to unprecedented levels of uncertainty, with the full range of possible consequences unknown. We applied a standardised firm-wide approach in response to that uncertainty when assessing the company's future prospects and performance. However, no audit should be expected to predict the unknowable factors or all possible future implications for a company and this is particularly the case in relation to Brexit.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
NEWTON HALL (NORTHUMBERLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF NEWTON HALL (NORTHUMBERLAND) LIMITED
- 6 -
The director is 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.
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 director's 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 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 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 and the director's
r
eport
.
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 director's remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained
in detail as part of
the director's
r
esponsibilities
s
tatement, 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 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 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.
NEWTON HALL (NORTHUMBERLAND) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF NEWTON HALL (NORTHUMBERLAND) LIMITED
- 7 -
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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://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 member 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 member those matters we are required to state to him 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 member for our audit work, for this report, or for the opinions we have formed.
Paul Gainford (Senior Statutory Auditor)
for and on behalf of RMT Accountants & Business Advisors Ltd
Statutory Auditor
Gosforth Park Avenue
Newcastle upon Tyne
NE12 8EG
Date: 30 April 2019
NEWTON HALL (NORTHUMBERLAND) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2018
- 8 -
2018
2017
Notes
£
£
Turnover
3
7,946,152
5,897,946
Cost of sales
(1,342,566)
(1,091,608)
Gross profit
6,603,586
4,806,338
Administrative expenses
(5,097,238)
(4,203,351)
Operating profit
4
1,506,348
602,987
Interest payable and similar expenses
6
(79,555)
(42,349)
Profit before taxation
1,426,793
560,638
Tax on profit
7
(312,957)
(89,289)
Profit for the financial year
1,113,836
471,349
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
NEWTON HALL (NORTHUMBERLAND) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2018
- 9 -
2018
2017
£
£
Profit for the year
1,113,836
471,349
Other comprehensive income
-
-
Total comprehensive income for the year
1,113,836
471,349
NEWTON HALL (NORTHUMBERLAND) LIMITED
BALANCE SHEET
AS AT
31 JULY 2018
31 July 2018
- 10 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
9
11,353,423
11,251,227
Current assets
Stocks
11
226,954
173,818
Debtors
12
779,311
797,993
Cash at bank and in hand
1,200,038
461,954
2,206,303
1,433,765
Creditors: amounts falling due within one year
13
(4,318,152)
(3,657,105)
Net current liabilities
(2,111,849)
(2,223,340)
Total assets less current liabilities
9,241,574
9,027,887
Creditors: amounts falling due after more than one year
14
(5,700,822)
(6,392,152)
Provisions for liabilities
16
(192,288)
(151,107)
Net assets
3,348,464
2,484,628
Capital and reserves
Called up share capital
19
100
100
Profit and loss reserves
3,348,364
2,484,528
Total equity
3,348,464
2,484,628
The financial statements were approved and signed by the director and authorised for issue on 29 April 2019
D Fisher
Director
Company Registration No. 05963712
NEWTON HALL (NORTHUMBERLAND) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2018
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2016
100
2,863,179
2,863,279
Year ended 31 July 2017:
Profit and total comprehensive income for the year
-
471,349
471,349
Dividends
8
-
(850,000)
(850,000)
Balance at 31 July 2017
100
2,484,528
2,484,628
Year ended 31 July 2018:
Profit and total comprehensive income for the year
-
1,113,836
1,113,836
Dividends
8
-
(250,000)
(250,000)
Balance at 31 July 2018
100
3,348,364
3,348,464
NEWTON HALL (NORTHUMBERLAND) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2018
- 12 -
2018
2017
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
24
1,623,143
(149,482)
Interest paid
(79,555)
(42,349)
Income taxes paid
(70,000)
(210,828)
Net cash inflow/(outflow) from operating activities
1,473,588
(402,659)
Investing activities
Purchase of tangible fixed assets
(348,237)
(788,513)
Net cash used in investing activities
(348,237)
(788,513)
Financing activities
Proceeds of new bank loans
-
2,600,000
Repayment of bank loans
(137,267)
(70,959)
Dividends paid
(250,000)
(850,000)
Net cash (used in)/generated from financing activities
(387,267)
1,679,041
Net increase in cash and cash equivalents
738,084
487,869
Cash and cash equivalents at beginning of year
461,954
(25,915)
Cash and cash equivalents at end of year
1,200,038
461,954
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2018
- 13 -
1
Accounting policies
Company information
Newton Hall (Northumberland) Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
The Apartment Group 1st Floor, Two, Jesmond Three Sixty, Newcastle upon Tyne, NE2 1DB.The principal business address is Newton Hall, Newton-By-The-Sea, Alnwick, Northumberland, NE66 3DZ.
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, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
A
t the time of approving the financial statements
,
t
he director has a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.2
Turnover
Turnover represents income receivable from the company's principal activities and is exclusive of value added tax. Income from the provision of hotel and conference facilities are recognised on the day of the event. Income from cottage rental and bar/restaurant operations are recognised when the respective service is provided. Caravan site income is spread over the duration of the caravan season. Amounts relating to future accounting periods are carried forward within accruals and deferred income.
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% reducing balance
Motor vehicles
25% reducing balance
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
.
No depreciation is charged during the year for freehold land and buildings in accordance with the true and fair principle, the director believes that this represents a more accurate view.
1.4
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any
).
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
1
Accounting policies
(Continued)
- 14 -
1.5
Stocks
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include 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.
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.
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
1
Accounting policies
(Continued)
- 15 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans
and
loans from
connected
companies, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future receipts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
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 though 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.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
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
, if considered material to the financial statements
.
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
In 2012, Vibrant Ventures Limited, a related company, acquired freehold properties to the value of £455,000. Although legal title is held by Vibrant Ventures Limited, the beneficial ownership of the aforementioned properties sits in
Newton Hall (Northumberland) Limited
.
It is the intention to transfer the legal ownership of the properties from Vibrant Ventures Limited to Newton Hall (Northumberland) Limited to align beneficial and legal ownership together. The required financial support was provided to Vibrant Ventures Limited by Newton Hall (Northumberland) Limited. As there will be no overall loss to either Company, the transaction involving the freehold property has been treated as if the freehold property was acquired by Newton Hall (Northumberland) Limited during the year ended 31 July 2012 and was owned by the Company at the year end. This accounting treatment reflects the substance of the transaction rather than its legal form.
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Assessing indicators of impairment
In assessing whether there have been any indications of impairment of assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Determining residual values and useful economic lives of tangible fixed assets
The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for tangible fixed assets. When determining the residual value management aim to assess the amount that the company would currently obtain for disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices. The carrying amount of tangible fixed assets at the reporting end date was £11,353,423 (2017 - £11,251,227).
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2018
2017
£
£
Turnover analysed by class of business
Hall and cottage rentals
2,098,988
1,531,169
Caravan pitch income
107,640
113,432
Restaurant and bar sales
5,739,524
4,253,345
7,946,152
5,897,946
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
3
Turnover and other revenue
(Continued)
- 18 -
2018
2017
£
£
Turnover analysed by geographical market
United Kingdom
7,946,152
5,897,946
4
Operating profit
2018
2017
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
5,000
5,000
Depreciation of owned tangible fixed assets
246,041
255,992
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2018
2017
Number
Number
Office and management
21
13
Bar and restaurant
106
99
127
112
Their aggregate remuneration comprised:
2018
2017
£
£
Wages and salaries
2,225,168
1,944,521
Social security costs
154,196
120,816
Pension costs
15,615
3,788
2,394,979
2,069,125
6
Interest payable and similar expenses
2018
2017
£
£
Other finance costs:
Other interest
79,555
42,349
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 19 -
7
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
228,325
76,033
Adjustments in respect of prior periods
43,451
-
Total current tax
271,776
76,033
Deferred tax
Origination and reversal of timing differences
41,181
13,256
Total tax charge
312,957
89,289
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:
2018
2017
£
£
Profit before taxation
1,426,793
560,638
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2017: 19.67%)
271,091
110,255
Tax effect of expenses that are not deductible in determining taxable profit
3,626
2,424
Adjustments in respect of prior years
43,451
2,611
Effect of change in corporation tax rate
(46,392)
(26,001)
Deferred tax adjustment in the year
41,181
-
Taxation charge for the year
312,957
89,289
8
Dividends
2018
2017
£
£
Interim paid
250,000
850,000
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 20 -
9
Tangible fixed assets
Land and buildings Freehold
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 August 2017
10,008,795
1,847,107
62,583
11,918,485
Additions
210,414
127,823
10,000
348,237
At 31 July 2018
10,219,209
1,974,930
72,583
12,266,722
Depreciation and impairment
At 1 August 2017
-
639,581
27,677
667,258
Depreciation charged in the year
-
237,514
8,527
246,041
At 31 July 2018
-
877,095
36,204
913,299
Carrying amount
At 31 July 2018
10,219,209
1,097,835
36,379
11,353,423
At 31 July 2017
10,008,795
1,207,526
34,906
11,251,227
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2018
2017
£
£
Cost
9,721,890
9,628,742
Accumulated depreciation
-
-
Carrying value
9,721,890
9,628,742
10
Financial instruments
2018
2017
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
561,715
625,353
Carrying amount of financial liabilities
Measured at amortised cost
9,355,242
9,785,783
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
- 21 -
11
Stocks
2018
2017
£
£
Goods for resale
226,954
173,818
12
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
73,047
37,820
Amounts due from connected companies
41,787
15,714
Other debtors
26,922
41,285
Prepayments and accrued income
217,596
172,640
359,352
267,459
Amounts falling due after more than one year:
Amounts due from connected companies
419,959
530,534
Total debtors
779,311
797,993
13
Creditors: amounts falling due within one year
2018
2017
Notes
£
£
Bank loans and overdrafts
15
134,065
141,555
Trade creditors
516,455
388,587
Amounts due to connected companies
19,844
93,771
Corporation tax
231,747
29,971
Other taxation and social security
431,985
233,503
Other creditors
98,185
67,332
Accruals and deferred income
2,885,871
2,702,386
4,318,152
3,657,105
14
Creditors: amounts falling due after more than one year
2018
2017
Notes
£
£
Bank loans
15
2,257,709
2,387,486
Amounts due to connected companies
3,443,113
4,004,666
5,700,822
6,392,152
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
14
Creditors: amounts falling due after more than one year
(Continued)
- 22 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
1,776,880
15
Loans and overdrafts
2018
2017
£
£
Bank loans
2,391,774
2,529,041
Payable within one year
134,065
141,555
Payable after one year
2,257,709
2,387,486
At the reporting date the
bank loan
was
secured by way of a debenture
11 January 2017
incorporating a fixed and floating charge over the assets of the company
.
The Co-Operative Bank Plc
bank also held
a first legal charge dated
11 January 2017
over the leasehold property, together with an assignment over a life policy in the name of the director, Mr D Fisher
. Following refinancing of the loan by NatWest Bank Plc in December 2018 the charges with the Co-Operative Bank Plc in relation to the loan were all satisfied.
The Co-operative Bank Plc loan of £2,600,000 (reporting date carrying amount £2,391,774, (2017: £2,529,041)) was refinanced by NatWest Bank Plc in December 2018 by a loan of £2.400,000 repayable in December 2023. The new loan accrues interest at 2.5% per annum over the Bank's Base Rate at the relevant time.
16
Provisions for liabilities
2018
2017
Notes
£
£
Deferred tax liabilities
17
192,288
151,107
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2018
2017
Balances:
£
£
Accelerated capital allowances
151,107
151,107
Retirement benefit obligations
(329)
-
Fixed asset timing differences
41,510
-
192,288
151,107
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
17
Deferred taxation
(Continued)
- 23 -
2018
Movements in the year:
£
Liability at 1 August 2017
151,107
Charge to profit or loss
41,181
Liability at 31 July 2018
192,288
18
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,615
3,788
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.
19
Share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary of £1 each
100
100
The company has one class of ordinary shares which do not carry a right to fixed income.
20
Financial commitments, guarantees and contingent liabilities
Security has been provided by way of a legal charge and mortgage debenture over the assets of the company, together with an assignment over a life policy in the name of the director, Mr D Fisher, in favour of The Co-Operative Bank Plc. In addition, the company has given an unlimited cross guarantee in respect of the bank borrowings of Apartment 1 Limited and Manners (Newcastle) Limited. No liability is expected to arise as a result of this guarantee.
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Head office charge
2018
2017
£
£
Entities with control, joint control or significant influence over the company
806,811
359,591
NEWTON HALL (NORTHUMBERLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2018
21
Related party transactions
(Continued)
- 24 -
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
3,462,957
4,098,437
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
461,746
546,248
22
Directors' transactions
Included in creditors due within one year is an amount of £44,731 (2017 - (£30,995)) owed to D Fisher, shareholder of the company.
Dividends totalling £250,000 (2017 - £850,000) were paid in the year in respect of shares held by the company's directors.
23
Ultimate controlling party
D Fisher is the controlling party by virtue of his interest in the issued share capital of the company.
24
Cash generated from operations
2018
2017
£
£
Profit for the year after tax
1,113,836
471,349
Adjustments for:
Taxation charged
312,957
89,289
Finance costs
79,555
42,349
Depreciation and impairment of tangible fixed assets
246,041
255,992
Movements in working capital:
(Increase) in stocks
(53,136)
(6,141)
Decrease/(increase) in debtors
18,682
(100,442)
(Decrease) in creditors
(94,792)
(901,878)
Cash generated from/(absorbed by) operations
1,623,143
(149,482)
2018-07-31
2017-08-01
false
CCH Software
CCH Accounts Production 2019.100
No description of principal activity
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