|
Company Registration Number SC477184
|
|
FORTHWELL (PUB GROUP) LIMITED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTHWELL (PUB GROUP) LIMITED
COMPANY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Armstrong Watson Audit Limited
|
|
|
|
|
|
1st Floor 24 Blythswood Square
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORTHWELL (PUB GROUP) LIMITED
CONTENTS
|
|
|
Statement of Financial Position
|
|
Notes to the Financial Statements
|
|
|
|
FORTHWELL (PUB GROUP) LIMITED
REGISTERED NUMBER: SC477184
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Creditors: amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 2 to 9 form part of these financial statements.
Page 1
|
|
FORTHWELL (PUB GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Forthwell (Pub Group) Limited is a private company, limited by shares, registered in Scotland. The company's registration number is SC477184 and the registered office address is 23 Royal Exchange Square, Glasgow, G1 3AJ.
The principal activity of the company is that of a property rental company.
The Financial Statements are presented in pound sterling, rounded to the nearest pound, as this is the currency of the primary economic environment in which the company operates.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The company's loan was due for repayment in August 2019 which has not yet been repaid and has resulted in the company ending the year in a net current liability position of £458,631.
The directors are currently in negotiation with the loan provider to settle this loan by disposing of assets to settle the principal in full. The loan provider has been cooperative in reaching a solution and has to date agreed to place repayment of the loan on hold until such times that the business has disposed of sufficient assets to repay the principal amount in full.
The loan provider has a floating charge and standard security over all properties owned by the company. The loan value represents 64% of the value of the properties and the directors therefore believe that the loan refinancing will be successful.
Therefore, these financial statements are prepared on a going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Page 2
|
|
FORTHWELL (PUB GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2.Accounting policies (continued)
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the Statement of Income and Retained Earnings in the year in which they are incurred.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
Investment property is carried at fair value determined annually by directors with reference to external values and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Income and Retained Earnings.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Page 3
|
|
FORTHWELL (PUB GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2.Accounting policies (continued)
|
|
|
Significant judgements and estimates
|
The preparation of these financial statements require management to make judgments, estimates
and assumptions that affect the application of policies and reported amounts of assets and liabilities,
income and expenses.
Judgements and estimates are continually evaluated and are based on historical experiences and
other factors, including expectations of future events that are believed to be reasonable under the
circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year are discussed below:
(a) Investment properties
Investment property values within the accounts are assessed annually.
Valuations are based on external valuations and derived from the current market rents and
investment property yields for comparable real estate, adjusted if necessary for any difference in the
nature, location or condition of the specific asset.
There is an inevitable degree of judgement involved in that each property is unique and value can
only ultimately be reliably tested in the market itself.
|
|
The average monthly number of employees, including directors, during the year was 2 (2017 - 2).
|
Page 4
|
|
FORTHWELL (PUB GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
|
|
Freehold investment property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The 2018 valuations were made by the directors, on an open market value for existing use basis.
The investment property was purchased by the company in 2014 at its’ fair value. The directors do not believe that the value has changed materially since this date.
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 5
|
|
FORTHWELL (PUB GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following liabilities were secured:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of security provided:
|
Other loans are secured by way of a fixed charge over the rental income owed to the company held by Heineken UK Limited.
Other loans are secured by way of a floating charge over all properties and undertakings of the company held by Heineken UK Limited.
Other loans are secured by way of a standard security over all of the properties owned by the company held by Heineken UK Limited.
Page 6
|
|
FORTHWELL (PUB GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
|
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following liabilities were secured:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Details of security provided:
|
Other loans are secured by way of a fixed charge over the rental income owed to the company held by Heineken UK Limited.
Other loans are secured by way of a floating charge over all properties and undertakings of the company held by Heineken UK Limited.
Other loans are secured by way of a standard security over all of the properties owned by the company held by Heineken UK Limited.
|
|
|
|
|
Analysis of the maturity of loans is given below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts falling due 1-2 years
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Page 7
|
|
FORTHWELL (PUB GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
1 (2017 - 1) Ordinary share of £1.00
|
|
|
Following a property disposal in the current year the directors identified that a property disposed of in 2016 had been disposed of at an incorrect value. Therefore, a prior period adjustment has been made which has reduced the investment property value and the opening reserves by £138,170.
Following a review of the most up to date loan statements from the company's loan provider, the directors identified that a surcharge had been raised by the loan provider but not included within the financial statements. It was deemed appropriate to restate the accounts to correctly reflect this surcharge in the periods to which it relates.
The prior year adjustment has increased the loan balance due to the lender and decreased brought forward reserves by £114,495 and £106,705 in 2016 and 2017 respectively.
|
|
Related party transactions
|
|
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
|
|
|
Post balance sheet events
|
On the 3 August 2019 Ediston (RES) Limited has purchased the entire ordinary share capital of Landfern Limited. On the same date the shares in Forthwell (Pub Group) Limited were transferred to Aghoco 5009 Limited.
The company's parent undertaking at the balance sheet date was "Landfern Limited", a company incorporated in Scotland. Their registered address is 23 Royal Exchange Square, Glasgow, Scotland, G1 3AJ. The company's ultimate parent undertaking at the date the accounts were issued was Aghoco 5009 Limited
.
The company’s results are included within the consolidated accounts of Landfern Limited and these can be found on www.companieshouse.gov.uk.
The ultimate controlling party is Lynn Mortimer by virtue of her shareholding in Aghoco 5009 Limited.
Page 8
|
|
FORTHWELL (PUB GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
The auditors' report on the financial statements for the year ended 31 December 2018 was unqualified.
|
|
In their report, the auditors emphasised that following matter without qualifying their report:
We draw attention to note 2.2 in the financial statements, which indicates that loan finance was due for repayment in August 2019 which has not as yet been repaid. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
|
The audit report was signed on 23 December 2019 by Joanna Gray ACA FCCA DChA (Senior Statutory Auditor) on behalf of Armstrong Watson Audit Limited.
Page 9
|
