Company Registration No. 08766501 (England and Wales)
PROVINCIAL HOTELS & INNS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2019
PAGES FOR FILING WITH REGISTRAR
PROVINCIAL HOTELS & INNS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
PROVINCIAL HOTELS & INNS LIMITED
BALANCE SHEET
AS AT 31 MAY 2019
31 May 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
4
1
1
Tangible assets
5
2,893,565
3,326,617
2,893,566
3,326,618
Current assets
Stocks
31,529
37,450
Debtors
6
129,462
273,937
Cash at bank and in hand
13,657
28,236
174,648
339,623
Creditors: amounts falling due within one year
7
(2,318,900)
(2,549,585)
Net current liabilities
(2,144,252)
(2,209,962)
Total assets less current liabilities
749,314
1,116,656
Creditors: amounts falling due after more than one year
8
(1,367,542)
(1,835,454)
Net liabilities
(618,228)
(718,798)
Capital and reserves
Called up share capital
9
100
100
Revaluation reserve
713,885
-
Profit and loss reserves
(1,332,213)
(718,898)
Total equity
(618,228)
(718,798)
PROVINCIAL HOTELS & INNS LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2019
31 May 2019
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 May 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he 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.
The financial statements were approved by the board of directors and authorised for issue on 13 May 2020 and are signed on its behalf by:
Mr M Chambers
Director
Company Registration No. 08766501
PROVINCIAL HOTELS & INNS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2019
- 3 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 June 2017
100
-
(436,531)
(436,431)
Period ended 31 May 2018:
Loss and total comprehensive income for the period
-
-
(282,367)
(282,367)
Balance at 31 May 2018
100
-
(718,898)
(718,798)
Period ended 31 May 2019:
Loss for the period
-
-
(613,315)
(613,315)
Other comprehensive income:
Revaluation of tangible fixed assets
-
713,885
-
713,885
Total comprehensive income for the period
-
713,885
(613,315)
100,570
Balance at 31 May 2019
100
713,885
(1,332,213)
(618,228)
PROVINCIAL HOTELS & INNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2019
- 4 -
1
Accounting policies
Company information
Provincial Hotels & Inns Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Ground Floor Office Quarry Warehouse, Quarry Lane Sandside, Milnthorpe, Cumbria, LA7 7HG.
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
At the time of approving the financial statements having due regard to the impact of COVID-19 as referred to in note 10 and the ongoing support of the company's bankers, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts.
1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal instalments over its estimated useful economic life.
1.5
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:
Land and buildings
2-10% straight line
Plant and machinery
10% straight line
Fixtures, fittings & 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
.
PROVINCIAL HOTELS & INNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2019
1
Accounting policies
(Continued)
- 5 -
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity
;
such
gains and loss
es
are recognised in profit or loss.
1.6
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). 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.8
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
PROVINCIAL HOTELS & INNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2019
1
Accounting policies
(Continued)
- 6 -
1.9
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.
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
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.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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.
1.12
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 lease
s
asset are consumed.
PROVINCIAL HOTELS & INNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2019
- 7 -
2
Exceptional item
2019
2018
£
£
Loss / (Profit) on disposal of assets
128,791
(118,323)
As indicated, the exceptional items relate to the loss / (profit) on sale of trading properties. The comparative figure has been reallocated from administrative expenses where it was reported last year, in order to ensure comparability of reporting.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was 57 (2018 - 101).
4
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2018 and 31 May 2019
1
Amortisation and impairment
At 1 June 2018 and 31 May 2019
-
Carrying amount
At 31 May 2019
1
At 31 May 2018
1
PROVINCIAL HOTELS & INNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2019
- 8 -
5
Tangible fixed assets
Land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 June 2018
3,202,543
5,428
274,554
3,482,525
Additions
59,483
325
9,852
69,660
Disposals
(1,274,092)
-
(17,067)
(1,291,159)
Revaluation
713,885
-
-
713,885
At 31 May 2019
2,701,819
5,753
267,339
2,974,911
Depreciation and impairment
At 1 June 2018
112,314
1,967
41,627
155,908
Depreciation charged in the year
51,587
1,086
18,899
71,572
Eliminated in respect of disposals
(140,519)
-
(5,615)
(146,134)
At 31 May 2019
23,382
3,053
54,911
81,346
Carrying amount
At 31 May 2019
2,678,437
2,700
212,428
2,893,565
At 31 May 2018
3,090,229
3,461
232,927
3,326,617
The land and buildings have been revalued based upon open market valuations prepared by Sanderson Weatherall Charetered Surveyors.
6
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
17,909
118,155
Other debtors
111,553
155,782
129,462
273,937
PROVINCIAL HOTELS & INNS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2019
- 9 -
7
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
219,077
269,961
Trade creditors
(50,711)
174,765
Taxation and social security
43,806
39,619
Other creditors
2,106,728
2,065,240
2,318,900
2,549,585
8
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
1,367,542
1,835,454
The bank loan is secured by a charge dated 23 June 2016 over the assets of the company.
9
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
10
Events after the reporting date
Since the beginning of 2020, the COVID-19 pandemic has severely impacted many local economies around the world. Measures taken by governments to control the spread of the virus have included travel bans, quarantines, social distancing and closing of non-essential services and this has resulted in many businesses having to cease or limit their activities for long or indefinite periods of time resulting in an economic slowdown. Governments and central banks have responded with monetary and fiscal interventions in an attempt to stabilise economic conditions.
Given the requirement for all our sites to close during the pandemic, at the time of approving these financial statements the company is not generating any income. Instead the directors have put measures in place to minimise costs and benefit from both the Coronavirus Job Retention Scheme and the cash grants and rates relief available in the leisure sector.
The company has determined that these are non-adjusting post balance sheet events. Accordingly, the financial position and results for the period ended 31 May 2019 have not been adjusted to reflect their impact. It is not possible to estimate the duration and impact of the COVID-19 pandemic on the financial position and results of the company for future periods.
2019-05-31
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false
13 May 2020
CCH Software
CCH Accounts Production 2020.100
No description of principal activity
Mr M Chambers
Mr K Mistry
Mr W H Gore
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