Company Registration No. SC446546 (Scotland)
RM BRORA LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
PAGES FOR FILING WITH REGISTRAR
RM BRORA LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
RM BRORA LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2019
31 December 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
1,014,992
939,852
Current assets
Stocks
10,434
111,851
Debtors
4
45,638
50,881
Cash at bank and in hand
12,283
12,241
68,355
174,973
Creditors: amounts falling due within one year
5
(526,503)
(429,998)
Net current liabilities
(458,148)
(255,025)
Total assets less current liabilities
556,844
684,827
Creditors: amounts falling due after more than one year
6
(431,535)
(459,538)
Provisions for liabilities
Deferred tax liability
9,564
55,918
(9,564)
(55,918)
Net assets
115,745
169,371
Capital and reserves
Called up share capital
7
750
750
Revaluation reserve
225,705
225,705
Profit and loss reserves
(110,710)
(57,084)
Total equity
115,745
169,371
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
RM BRORA LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2019
31 December 2019
- 2 -
For the financial year ended 31 December 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 27 August 2020 and are signed on its behalf by:
D F Sutherland CBE CA
Director
Company Registration No. SC446546
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2019
- 3 -
1
Accounting policies
Company information
RM Brora Limited
(SC446546),
is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Oldtown of Leys House, Culduthel, Inverness, IV2 6AE.
The business operates from the following address: Royal Marine Hotel, 46 Golf Road, Brora, KW9 6QS.
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 modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
1.2
Going concern
RM Brora Limited continues to strengthen its presence in the hospitality and leisure market in a challenging economic period.
true
The outcome of the ongoing financial forecasts for the financial period to 31 December 2020 are inherently uncertain, particularly in light of recent global events brought on by the Coronavirus pandemic. However, at the date of approving these financial statements the Directors are confident that with the ongoing financial support of the Directors, the company’s financial milestones will continue to be met.
The company has been meeting its day to day working capital requirements mainly through funding provided by the Directors and their associated entities. The Directors have confirmed that they will not seek repayment of the balances due to them of £267,464 for a period of at least 12 months from the date of approval of the financial statements, and until the company is in a position to make the repayments.
The Directors are confident that funds will be made available to allow the company to meet its liabilities as they fall due. For these reasons, the Directors continue to adopt the going concern basis in preparing the financial statements and have considered a period of twelve months from the date of approval of these financial statements.
1.3
Turnover
Turnover represents amounts receivable for good and services net of VAT and trade discounts and is recognised on the accruals basis.
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.
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 4 -
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:
Freehold land and buildings
Not depreciated
Plant and machinery
10% Straight line
Fixtures, fittings & equipment
10% Straight line
Office equipment
25% Straight line
Motor vehicles
25% Straight line
The non-depreciation of freehold land and buildings is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors this is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or qualified.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible to determine whether there is any indication that those assets have suffered an impairment loss
.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include
cash at bank and in hand.
1.8
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
. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets
are assessed for indicators of impairment at each reporting end date.
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
1
Accounting policies
(Continued)
- 5 -
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
.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.10
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.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 36 (2018 - 31).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 January 2019
683,926
443,836
1,127,762
Additions
109,990
13,101
123,091
At 31 December 2019
793,916
456,937
1,250,853
Depreciation and impairment
At 1 January 2019
-
187,910
187,910
Depreciation charged in the year
-
47,951
47,951
At 31 December 2019
-
235,861
235,861
Carrying amount
At 31 December 2019
793,916
221,076
1,014,992
At 31 December 2018
683,926
255,926
939,852
On 15 September 2016, Allied Surveyors Scotland PLC confirmed that as at 31 December 2016, there was no material difference between the open market value of land and buildings as at 31 December 2016 and their book value. The directors believe the valuation as at 15 September 2016 still reflects the book value as at 31 December 2019. Consequently no depreciation has been charged on these assets.
If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2019
2018
£
£
Cost
424,459
424,459
Accumulated depreciation
(20,283)
(20,283)
Carrying value
404,176
404,176
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
- 7 -
4
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
4,148
8,401
Other debtors
41,490
42,480
45,638
50,881
5
Creditors: amounts falling due within one year
2019
2018
£
£
Bank loans and overdrafts
102,442
52,067
Trade creditors
23,641
36,709
Taxation and social security
13,618
20,138
Other creditors
386,802
321,084
526,503
429,998
Bank loans and overdrafts are secured by way of a security bond and floating charge over the company's assets.
6
Creditors: amounts falling due after more than one year
2019
2018
£
£
Bank loans and overdrafts
431,535
459,538
The bank loan is secured by a security bond and a floating charge over the company's assets.
RM BRORA LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2019
6
Creditors: amounts falling due after more than one year
(Continued)
- 8 -
Amounts included above which fall due after five years are as follows:
Payable by instalments
310,744
342,312
7
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
375 A Ordinary shares of £1 each
375
375
375 B Ordinary shares of £1 each
375
375
750
750
8
Events after the reporting date
As highlighted in note 1.2, the emergence of the Coronavirus pandemic has introduced new risks and uncertainties to the business. However, those risks continue to be carefully monitored and action taken wherever possible to mitigate its effect on the business.
9
Related party transactions
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due to related parties
£
£
Key management personnel
317,464
267,464
These loans are unsecured, interest free and have no fixed terms of repayment.