Company Registration No. 06426555 (England and Wales)
MANNERS (NEWCASTLE) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
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 - 8
MANNERS (NEWCASTLE) LIMITED
BALANCE SHEET
AS AT
31 JULY 2020
31 July 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
4
3,040,886
3,085,856
Current assets
Stocks
49,748
60,742
Debtors
5
1,390,636
1,170,021
Cash at bank and in hand
82,644
213,920
1,523,028
1,444,683
Creditors: amounts falling due within one year
6
(427,007)
(555,832)
Net current assets
1,096,021
888,851
Total assets less current liabilities
4,136,907
3,974,707
Creditors: amounts falling due after more than one year
7
(3,196,145)
(3,066,961)
Provisions for liabilities
8
(147,026)
(65,535)
Net assets
793,736
842,211
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
793,735
842,210
Total equity
793,736
842,211
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 April 2021
D Fisher
Director
Company Registration No. 06426555
MANNERS (NEWCASTLE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2020
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 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
Year ended 31 July 2020:
Loss and total comprehensive income for the year
-
(48,475)
(48,475)
Balance at 31 July 2020
1
793,735
793,736
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2020
- 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. Social distancing measures and restrictions on trading have remained in place since that date. The UK Government have announced a ‘Roadmap out of lockdown’ under which restrictions will remain in place until at least 21 June 2021. Trading restrictions in place have had a detrimental impact on the trading performance of the business.
However, the director has an expectation that trade will return to near pre-COVID levels once all restrictions are lifted. The expectation is supported by financial forecasts which demonstrate a return to profitability and positive cash flows on a reduced level of revenue. Additionally, the company has the financial support of its bankers and other companies owned by the director.
Therefore the director has considered the impact of the current 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 continue trading at a reduced level for the foreseeable future.
The director acknowledges the depth and duration of COVID-19 is still an unknown factor. In the unlikely event the government deviates from its planned 'Roadmap out of Lockdown' this could lead to uncertainty on future trading, the timing of cash flows and financial resources
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 2020
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.
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.
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
1
Accounting policies
(Continued)
- 5 -
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.
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.
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.
1.11
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.
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 6 -
2
Operating profit
2020
2019
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 66
(2019 - 74).
4
Tangible fixed assets
Freehold land and buildings
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 August 2019
2,505,079
1,442,998
3,948,077
Additions
27,799
27,799
Transfers
11,321
(11,321)
At 31 July 2020
2,516,400
1,459,476
3,975,876
Depreciation and impairment
At 1 August 2019
862,221
862,221
Depreciation charged in the year
72,769
72,769
At 31 July 2020
934,990
934,990
Carrying amount
At 31 July 2020
2,516,400
524,486
3,040,886
At 31 July 2019
2,505,079
580,777
3,085,856
5
Debtors
2020
2019
Amounts falling due within one year:
£
£
Corporation tax recoverable
37,945
37,527
Amounts due from connected companies
1,251,386
1,051,263
Other debtors
101,305
81,231
1,390,636
1,170,021
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 7 -
6
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans
33,700
39,917
Trade creditors
105,428
176,706
Amounts due to connected companies
19,938
19,356
Corporation tax
20,214
Other taxation and social security
80,180
131,854
Other creditors
187,761
167,785
427,007
555,832
7
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans
673,269
690,581
Amounts due to connected companies
2,522,876
2,376,380
3,196,145
3,066,961
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
2020
2019
£
£
Deferred tax liabilities
147,026
65,535
9
Called up share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
1 Ordinary of £1 each
1
1
10
Financial commitments, guarantees and contingent liabilities
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
,
Newton Hall (Northumberland) Limited
and Vibrant Ventures Limited
. No liability is expected to arise as a result of this guarantee.
MANNERS (NEWCASTLE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2020
- 8 -
11
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. There are still significant unknowns on the depth and duration of COVID-19. In the event the government deviates from its planned 'Roadmap out of Lockdown' there could be uncertainties on future trading, the timing of cash flows and financial resources.
In this situation such material uncertainties 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.
2020-07-31
2019-08-01
false
30 April 2021
CCH Software
CCH Accounts Production 2021.100
No description of principal activity
This audit opinion is unqualified
D Fisher
A J Fisher
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