Company Registration No. 06426555 (England and Wales)
MANNERS (NEWCASTLE) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
PAGES FOR FILING WITH REGISTRAR
MANNERS (NEWCASTLE) LIMITED
COMPANY INFORMATION
Director
D Fisher
Secretary
A J Fisher
Company number
06426555
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
MANNERS (NEWCASTLE) LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
MANNERS (NEWCASTLE) LIMITED
BALANCE SHEET
AS AT
31 JULY 2019
31 July 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
4
3,085,856
2,263,996
Current assets
Stocks
60,742
55,346
Debtors
5
1,170,021
1,580,685
Cash at bank and in hand
213,920
226,733
1,444,683
1,862,764
Creditors: amounts falling due within one year
6
(555,832)
(424,835)
Net current assets
888,851
1,437,929
Total assets less current liabilities
3,974,707
3,701,925
Creditors: amounts falling due after more than one year
7
(3,066,961)
(2,826,210)
Provisions for liabilities
(65,535)
(58,124)
Net assets
842,211
817,591
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
842,210
817,590
Total equity
842,211
817,591
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on
30 July 2020
2020-07-30
D Fisher
Director
Company Registration No. 06426555
MANNERS (NEWCASTLE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2019
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2017
1
770,424
770,425
Year ended 31 July 2018:
Profit and total comprehensive income for the year
-
47,166
47,166
Balance at 31 July 2018
1
817,590
817,591
Year ended 31 July 2019:
Profit and total comprehensive income for the year
-
24,620
24,620
Balance at 31 July 2019
1
842,210
842,211
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2019
- 3 -
1
Accounting policies
Company information
Manners (Newcastle) 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 places of business are Nancy's Bodello, 13 Argyle Street, Newcastle upon Tyne, NE1 6PF and Liberty Brown, 10 Timber Beach Road, Sunderland, SR5 3XG.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The director has adopted the going concern basis in preparing these financial statements after assessing the principal risks and having considered the impact of COVID-19.
On the 20
March 2020, the UK Government announced the temporary closure of all pubs, restaurants and hotels following the outbreak of COVID-19 in the UK. Although venues have re-opened since that date, trading restrictions in place have had a detrimental impact on the trading performance of the business.
The director considered the impact of the current COVID-19 environment on the business for the next 12 months from the approval of the balance sheet date and concluded the business has access to adequate financial resources to enable it to trade at a reduced level for the foreseeable future.
However, the director acknowledges the depth and duration of COVID-19 is an unknown factor and as such a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern due to the uncertainty on the full impact of COVID-19 on future trading, the timing of cash flows and financial resources which creates a risk the company may be unable to meet its financial obligations within the next 12 months.
1.3
Turnover
Turnover represents
the total value of bar and restaurant sales, excluding value added tax. Turnover is recognised at the point of sale in the bar and restaurant.
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 4 -
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.
Tangible fixed assets are stated at cost less depreciation. The company's freehold land and buildings are maintained by a programme of repair and refurbishment such that the residual value is deemed to be at least equal to the book value. Having regard to this, it is the opinion of the director that depreciation as required by the Companies Act 2006 and accounting standards would not be material. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold land and buildings
No depreciation charged
Fixtures, fittings and equipment
15% 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
.
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).
1.6
Stocks
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell.
1.7
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.
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 5 -
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.
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 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
paymen
ts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
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.
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
1
Accounting policies
(Continued)
- 6 -
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
The company provides a defined contribution pension scheme, the assets of which are held separately from those of the company in an independently administered fund. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.
2
Operating profit
2019
2018
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
4,000
4,000
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 74 (2018 - 58).
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 7 -
4
Tangible fixed assets
Freehold land and buildings
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 August 2018
1,537,276
1,507,969
3,045,245
Additions
853,235
49,597
902,832
Transfers
114,568
(114,568)
-
At 31 July 2019
2,505,079
1,442,998
3,948,077
Depreciation and impairment
At 1 August 2018
-
781,249
781,249
Depreciation charged in the year
-
80,972
80,972
At 31 July 2019
-
862,221
862,221
Carrying amount
At 31 July 2019
2,505,079
580,777
3,085,856
At 31 July 2018
1,537,276
726,720
2,263,996
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Corporation tax recoverable
37,527
-
Amounts due from connected companies
1,051,263
1,504,577
Other debtors
81,231
76,108
1,170,021
1,580,685
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 8 -
6
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans
39,917
-
Trade creditors
176,706
171,810
Amounts due to connected companies
19,356
19,356
Corporation tax
20,214
14,227
Other taxation and social security
131,854
45,388
Other creditors
167,785
174,054
555,832
424,835
The bank loan is secured by a legal charge and debenture over the assets of the company, together with an unlimited cross guarantee. Further detail on the cross guarantee is provided in Note 10 to the financial statements.
7
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans
690,581
-
Amounts due to connected companies
2,376,380
2,826,210
3,066,961
2,826,210
The bank loan is secured by a legal charge and debenture over the assets of the company, together with an unlimited cross guarantee. Further detail on the cross guarantee is provided in note 10 to the financial statements.
8
Provisions for liabilities
2019
2018
£
£
Deferred tax liabilities
65,535
58,124
9
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary of £1 each
1
1
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2019
- 9 -
10
Financial commitments, guarantees and contingent liabilities
At the reporting date s
ecurity
was
given by way of a legal charge and debenture over the assets of the company
.
In addition, the company has given an unlimited cross guarantee in
favour of Natwest Bank Plc in
respect of the bank borrowings of
Manners (Newcastle) Limited,
Apartment 1 Limited and Newton Hall (Northumberland) Limited. No liability is expected to arise as a result of this guarantee.
11
Events after the reporting date
On the 20
March 2020, the UK Government announced the temporary closure of all pubs, restaurants and hotels following the outbreak of COVID-19 in the UK. Although venues have re-opened since that date, trading restrictions in place have had a detrimental impact on the trading performance of the business.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Emphasis of matter - Material uncertainty relating to going concern
We draw attention to Note 1.2 in the financial statements which discloses the impact of COVID-19 on the operations of the company. The uncertainty of the full impact of COVID-19 on future trading, the timing of cash flows and financial resources creates a risk that the company may be unable to meet its financial obligations within the next 12 months.
These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The senior statutory auditor was Paul Gainford.
The auditor was RMT Accountants & Business Advisors Ltd.
2019-07-31
2018-08-01
false
30 July 2020
CCH Software
CCH Accounts Production 2020.200
No description of principal activity
This audit opinion is unqualified
D Fisher
A J Fisher
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