Grafham Water Sailing Club Limited - Period Ending 2020-03-31
Grafham Water Sailing Club Limited - Period Ending 2020-03-31
Registration number:
Grafham Water Sailing Club Limited
(A company limited by guarantee)
for the Year Ended 31 March 2020
Grafham Water Sailing Club Limited
Contents
Balance Sheet |
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Notes to the Financial Statements |
Grafham Water Sailing Club Limited
(Registration number: 00857021)
Balance Sheet as at 31 March 2020
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2020 |
2019 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
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Net assets |
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Capital and reserves |
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Other reserves |
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Profit and loss account |
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Total equity |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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Grafham Water Sailing Club Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
General information |
The company is a company limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1 towards the assets of the company in the event of liquidation.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
As an immediate consequence of COVID-19 the Club was closed for sailing for two months from the end of March 2020. Sailing recommenced at the beginning of June on a restricted basis. As a consequence, the club expects a significant reduction in membership income for 2020-21. A significant loss of revenue has already occurred from open events scheduled for the summer months, which have had to be postponed or cancelled, together with a loss of income from the curtailment of its training activities. The programme for the remainder of the summer and the autumn will depend on the timing and the extent of the lifting of the current restrictions. The result is a projected fall in revenue of circa 30%.
The directors have taken a number of actions to mitigate the impact of the above in order to protect the club assets. These include:
• Use of the government’s Coronavirus Job Retention Scheme;
• Receipt of local authority rates grant;
• Reduced rent payments including deferring balances.
As a result of this, it is currently anticipated that the club's cash reserves will be sufficient to meet the loss in gross margin due to Covid-19. However, the directors recognize they have further options to review overhead and access further support, possibly from the government Bounce Back Loan Scheme, in order to facilitate an effective recovery.
The financial statements have been prepared on a going concern basis.
Audit report
Grafham Water Sailing Club Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
-Annual membership subscriptions and boat dues
The subscription year runs from 1 April to 31 March and the income is recognised for the period in which it relates, with any subscriptions received in advance is carried forward into the next period at statement of financial position date as a creditor.
-Open meetings
Open meeting income is recognised on the date that the event occurs.
-Training school
Training school income is recognised on the date that the training within the school is provided.
-Bar
Bar income is recognised as received for the period in which it relates to.
Capital grants
Tax
The company operates as a club and as such accounts for taxation for non member income only and this is charged to the income statement for the year in which it relates to.
The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Permanent structures |
5-10% straight line per annum |
Temporary structures |
20% straight line per annum |
Rescue boats |
25% straight line per annum |
Fixtures and fittings |
33% straight line per annum |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Grafham Water Sailing Club Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Grafham Water Sailing Club Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Tangible assets |
Property improvements |
Furniture, fittings and equipment |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 April 2019 |
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Additions |
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Disposals |
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At 31 March 2020 |
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Depreciation |
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At 1 April 2019 |
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Charge for the year |
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Eliminated on disposal |
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At 31 March 2020 |
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Carrying amount |
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At 31 March 2020 |
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At 31 March 2019 |
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There was no large infrastructure expenditure during the year. In the prior year the club installed new heating infrastructure at a cost of £70,315, funded, in part, through a grant contribution, advanced membership payments and donations. This asset is being depreciated over its useful life of 20 years.
Stocks |
2020 |
2019 |
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Other inventories |
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Debtors |
2020 |
2019 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Grafham Water Sailing Club Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Creditors |
Creditors: amounts falling due within one year
2020 |
2019 |
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Due within one year |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Deferred members income |
68,725 |
71,005 |
Deferred training school income |
920 |
6,065 |
Deferred grant income |
8,110 |
5,475 |
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Creditors: amounts falling due after more than one year
2020 |
2019 |
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Due after one year |
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Deferred grant income |
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Deferred members income |
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34,815 |
47,367 |
Reserves |
Profit and loss account |
Other reserves |
Total |
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£ |
£ |
£ |
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At 1 April 2019 |
43,645 |
90,000 |
133,645 |
Surplus for the year |
12,573 |
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12,573 |
At 31 March 2020 |
56,218 |
90,000 |
146,218 |
A sum of £90,000 had been provided for in other reserves at 31 March 2018, to reflect the provision of running the Club for four months in the event of any unforeseen events outside control of the Club.
Grafham Water Sailing Club Limited
Notes to the Financial Statements for the Year Ended 31 March 2020
Obligations under leases and hire purchase obligations |
Operating leases
The total of future minimum lease payments is as follows:
2020 |
2019 |
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Not later than one year |
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Later than one year and not later than five years |
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Later than five years |
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Related party transactions |
During the year 2 (2019: 1) directors were remunerated by the club for coxswain and bar work. The total cost was £3,718 (2019: £8,183).