The Coniston Hotel Limited - Limited company accounts 20.1
The Coniston Hotel Limited - Limited company accounts 20.1
| REGISTERED NUMBER: |
| The Coniston Hotel Limited |
| Strategic Report, |
| Report of the Directors and |
| Financial Statements |
| for the Year Ended 31 March 2020 |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Contents of the Financial Statements |
| for the year ended 31 March 2020 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Statement of Comprehensive Income | 8 |
| Balance Sheet | 9 |
| Statement of Changes in Equity | 10 |
| Cash Flow Statement | 11 |
| Notes to the Cash Flow Statement | 12 |
| Notes to the Financial Statements | 14 |
| The Coniston Hotel Limited |
| Company Information |
| for the year ended 31 March 2020 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditor |
| Aireside House |
| Aireside Business Centre |
| Royd Ings Avenue |
| Keighley |
| West Yorkshire |
| BD21 4BZ |
| BANKERS: |
| 44 High Street |
| Skipton |
| North Yorkshire |
| BD23 1JR |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Strategic Report |
| for the year ended 31 March 2020 |
| The directors present their strategic report for the year ended 31 March 2020. |
| REVIEW OF BUSINESS |
| The financial year to 31st March 2020 was a very challenging year for the business in particular with the effects of Brexit swiftly followed by the Covid-19 pandemic. Whilst the Hotel managed to survive the effects of "Brexit" which contributed to lower guest footfall, corporate loss and reduced consumer spending, the business was not prepared for what was to come in terms of the devastation caused by Covid-19 and the subsequent lockdowns. Up until mid-February 2020, and prior to the "media" starting to spread the fear of Coronavirus, the business was on track to record an overall net profit, however during the last month of the year, all profit was completely wiped out as the business faced an unprecedented level of cancellations, refunds and additional costs across all sections of the business. |
| The final results for the year to 31st March 2020 showed a loss before tax of £272,377 against a prior year loss before tax of £28,038. |
| Given the general outlook in the Hotel industry and the difficulties caused by Brexit, the business had already outlined plans to make a number of redundancies prior to the onset of Covid-19. However, given the destructive effects on the world economy following the outbreak and lockdown 1, this decision to make redundancies was put back until October 2020 after the Director's had taken the opportunity to fully assess the damage caused to the business as a result of the outbreak. As a result of this process the overall workforce was reduced by 33%, reducing payroll costs by £1,000,000. |
| Going forward and throughout the year 2020/2021, the Hotel has continued to see further lockdowns, resulting in a substantial loss of trade, this will result in further trading losses for 20/21. In light of the changes necessary to reflect trading in a "covid-climate" the Hotel has already invested in a substantial upgrade to its main Huntsman's restaurant, to a new full refurbished indoor and outdoor experience, increasing the number of covers in particular outdoors and revitalising all its food offerings. The restaurant has also been rebranded including a name change to "The View." The business has also upgraded its main bar area to allow improved social distancing and a safe drinking environment. |
| Covid-19 has also presented the Directors with the opportunity to consider other business changes in light of new restrictions, the need for outdoor space and also its model for providing additional leisure facilities against the backdrop of no weddings and corporate. The large Coniston Estate in particular with its excellent countryside views and space has been developed to include bicycle tracks, country walks, outdoor picnic areas & outdoor spa classes, bringing additional value & benefit to enhance the overall guest experience. Going forward the business will continue to reflect the changes needed to survive in a pre-covid world with plans to upgrade the Spa, Corporate and Wedding facilities. |
| Given that Covid-19 has caused a great deal of financial instability the business has secured additional finance from the newly created CBILS fund, generated funds from a couple of asset sales and worked very closely with the Bank to secure sufficient working capital to survive the Lockdown. The Directors have confidence that the funding arrangements in place for the next 12 months will be sufficient to support all trading activity to hopefully look forward to a brighter future. |
| The company continues to hold formal monthly management & departmental meetings, where management accounts, results and forward sales are discussed in detail, this ensures the company's financial performance remains on target and plans are changed accordingly to reflect changes in trading conditions, in particular the new threats to the business of future lockdowns and the threat of new Covid variants. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Strategic Report |
| for the year ended 31 March 2020 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| Once the business recommences trade it will continue to maintain sufficient operational profits and cash to be able to meet all of its capital commitments and liabilities. With new plans already completed to reduce costs, increase income from new changes in the company model and revised working capital arrangements, the business has reduced any immediate risk and uncertainty. The continued business focus for the new financial year will be to closely monitor all of its working practices, operating procedures to continue to grow profit and maintain the reputation of the Hotel. |
| Credit Risk |
| Most of the company's customers & guests pay their bills immediately. Customers who are given credit terms are mainly long-standing customers or larger corporate businesses. All credit amounts are monitored closely each month. |
| Liquidity |
| The business continues to meet its liabilities as and when they fall due. The business reviews all cash flow requirements monthly, including future cash flows forecasts. |
| Interest Risk |
| The interest rate risk is managed by the use of appropriate instruments to protect against the cost of significant increase in interest rates. |
| FINANCIAL KEY PERFORMANCE INDICATORS |
| The key financial performance indicators are those that communicate the financial performance and strength of the company as a whole. The key financial performance metrics that are reported to the Board on a monthly basis are variance to budget, gross and net profitability and are discussed above. |
| ON BEHALF OF THE BOARD: |
| Director |
| 30 March 2021 |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Report of the Directors |
| for the year ended 31 March 2020 |
| The directors present their report with the financial statements of the company for the year ended 31 March 2020. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of hoteliers. |
| DIVIDENDS |
| The total distribution of dividends for the year to 31 March 2020 was £nil (2019: £175,000). |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| In accordance with Section 414(c) of the Companies Act 2006 (Strategic Report & Directors Report) Regulations 2013, the company has prepared a Strategic Report, which includes information that would have previously been included in the Directors Report. The strategic report includes a business review, principal risks and uncertainties, key financial performance indicators and future developments. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Report of the Directors |
| for the year ended 31 March 2020 |
| AUDITORS |
| The auditors, Walkers Accountants Limited, will be proposed for re-appointment at the forthcoming General Meeting. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| The Coniston Hotel Limited |
| Opinion |
| We have audited the financial statements of The Coniston Hotel Limited (the 'company') for the year ended 31 March 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 31 March 2020 and of its loss for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
| - | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
| - | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| The Coniston Hotel Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Statutory Auditor |
| Aireside House |
| Aireside Business Centre |
| Royd Ings Avenue |
| Keighley |
| West Yorkshire |
| BD21 4BZ |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Statement of Comprehensive Income |
| for the year ended 31 March 2020 |
| 31.3.20 | 31.3.19 |
| Notes | £ | £ |
| TURNOVER | 3 |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Administrative expenses | ( |
) | ( |
) |
| (112,063 | ) | 187,294 |
| Other operating income |
| OPERATING (LOSS)/PROFIT | 5 | ( |
) |
| Interest payable and similar expenses | 7 | ( |
) | ( |
) |
| LOSS BEFORE TAXATION | ( |
) | ( |
) |
| Tax on loss | 8 | ( |
) | ( |
) |
| LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
( |
) |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Balance Sheet |
| 31 March 2020 |
| 31.3.20 | 31.3.19 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Stocks | 13 |
| Debtors | 14 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 15 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
| ACCRUALS AND DEFERRED INCOME | 22 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 23 |
| Share premium | 24 |
| Retained earnings | 24 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Statement of Changes in Equity |
| for the year ended 31 March 2020 |
| Called up |
| share | Retained | Share | Total |
| capital | earnings | premium | equity |
| £ | £ | £ | £ |
| Balance at 1 April 2018 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - | ( |
) | - | ( |
) |
| Balance at 31 March 2019 |
| Changes in equity |
| Total comprehensive income | - | ( |
) | - | ( |
) |
| Balance at 31 March 2020 |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Cash Flow Statement |
| for the year ended 31 March 2020 |
| 31.3.20 | 31.3.19 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase payments paid |
( |
) |
( |
) |
| Tax paid | ( |
) | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Sale of tangible fixed assets |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) | ( |
) |
| Capital repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 230,325 | - |
| Amount withdrawn by directors | (194,969 | ) | (163,262 | ) |
| Equity dividends paid | ( |
) |
| Net cash from financing activities | ( |
) | ( |
) |
| Decrease in cash and cash equivalents | ( |
) | ( |
) |
| Cash and cash equivalents at beginning of year |
2 |
(741,266 |
) |
108,285 |
| Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Cash Flow Statement |
| for the year ended 31 March 2020 |
| 1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Loss before taxation | ( |
) | ( |
) |
| Depreciation charges |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Government grants | ( |
) | ( |
) |
| Finance costs | 179,227 | 218,474 |
| 204,351 | 494,341 |
| Decrease/(increase) in stocks | ( |
) |
| Decrease in trade and other debtors |
| (Decrease)/increase in trade and other creditors | ( |
) |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 March 2020 |
| 31.3.20 | 1.4.19 |
| £ | £ |
| Cash and cash equivalents | 2,835 | 4,065 |
| Bank overdrafts | ( |
) | ( |
) |
| (825,235 | ) | (741,266 | ) |
| Year ended 31 March 2019 |
| 31.3.19 | 1.4.18 |
| £ | £ |
| Cash and cash equivalents | 4,065 | 108,285 |
| Bank overdrafts | ( |
) |
| (741,266 | ) | 108,285 |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Cash Flow Statement |
| for the year ended 31 March 2020 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| Other |
| non-cash |
| At 1.4.19 | Cash flow | changes | At 31.3.20 |
| £ | £ | £ | £ |
| Net cash |
| Cash at bank |
| and in hand | 4,065 | (1,230 | ) | 2,835 |
| Bank overdrafts | (745,331 | ) | (82,739 | ) | (828,070 | ) |
| (741,266 | ) | ( |
) | (825,235 | ) |
| Debt |
| Finance leases | (69,843 | ) | 31,710 | - | (55,533 | ) |
| Debts falling due |
| within 1 year | (500,282 | ) | (4,637,069 | ) | - | (5,137,351 | ) |
| Debts falling due |
| after 1 year | (6,128,924 | ) | 4,838,585 | - | (1,290,339 | ) |
| (6,699,049 | ) | 233,226 | - | (6,483,223 | ) |
| Total | (7,440,315 | ) | 149,257 | - | (7,308,458 | ) |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements |
| for the year ended 31 March 2020 |
| 1. | STATUTORY INFORMATION |
| The Coniston Hotel Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Significant judgements and estimates |
| The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the applications of policies and the 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. |
| Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to mechanical and technological obsolescence that may change the utility of certain plant and equipment. |
| Going concern |
| The financial statements have been prepared on the going concern basis which assumes that the company will continue in operation for at least twelve months from the date of approval of these financial statements. |
| At 31 March 2020 the company had net current liabilities of £7,392,727 (2019; £2,540,108), including bank loans and overdrafts of £5,965,421 (2019; £1,245,613). |
| The directors have considered the cashflows of the business and they are of the opinion that the company will have sufficient cashflows to finance the on-going needs of the business. |
| The bank have confirmed its intention to support the company in line with the above and for this reason the directors consider it appropriate to adopt the going concern basis in these accounts. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Revenue recognition |
| Revenue comprises the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. |
| The Company recognises revenue when: |
| -the significant risks and rewards of the goods and services provided have transferred to the buyer; |
| -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 activities. |
| Revenue from room sales and other guest services is recognised when rooms are occupied and as services are provided. Deferred revenue consisting of deposits in advance and voucher sales, is recognises as revenue when the services are performed. |
| Turnover in respect of monthly spa subscriptions is recognised over the month to which it relates. |
| Goodwill |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Depreciation and tangible fixed assets |
| Freehold property | - |
| Freehold Property - Spa | - |
| Birds of prey | - |
| Plant and machinery | - |
| Office equipment & furniture | - |
| Motor vehicles | - |
| All tangible fixed assets are at cost less accumulated depreciation. Cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
| Renewals, repairs and maintenance are charged to profit and loss during the period in which they are incurred. |
| Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. The estimated useful lives range and depreciation bases are detailed above. |
| Assets are not depreciated in the year of acquisition. |
| The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
| Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised within administrative expenses in the income statement. |
| Legal fees and borrowing costs are capitalised as part of the cost of an assets where they are directly attributable to the acquisition, construction or production of a qualifying asset. |
| Impairment of fixed assets |
| At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indications exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
| If the recoverable amount of an asset is estimated to be less that its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
| Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in the prior years. A reversal of an impairment loss is recognised as income immediately. |
| Government grants |
| Government grants are accounted for under the accrual model. |
| Grants received relating to revenue are recognised as income on a systematic basis over the periods in which the company recognises the related cost for which the grant is intended to compensate. |
| Grants received to give immediate financial support are recognised as income in the period in which they become receivable. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are measured at the lower of cost and net realisable value. Cost is determined on a first in first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for costs of realisation. Provision is made where necessary for obsolete, slow moving, and defective stocks. |
| At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. Impairment loss is recognised immediately in the profit and loss. |
| Stock held for consumable purposes or replacements with no or nominal consideration are measured at the lower of replacement cost or cost, adjusted where applicable for obsolete or defective stock. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Debtors |
| Trade and other debtors are initially recognised at fair value and thereafter stated at amortised costs using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
| Cash and cash equivalents |
| Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. |
| In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and for an integral part of the Company's cash management. |
| Creditors |
| 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. |
| Finance costs |
| Finance costs are charged to the Income Statement 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. |
| Dividends |
| Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
| Operating Leases |
| Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The company only enters into basic financial instruments transactions that result in the recognition of the financial assets and liabilities like trade and other accounts receivable and payable, loan from bank and investments in non puttable ordinary shares. |
| Debt instruments (other than those repayable or receivable within one year), including loan and other amounts receivable and payable, are initially measured at the present value of the future cash flows and subsequently at amortised rate using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangement of a short term instrument constitute a financing transaction, like the payment of a trade debts deferred beyond normal business terms or financial at a rate of interest that is not a market rate or in case of an out right short term loan not at market rate of interest, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at the amortised cost. |
| Financial assets that are measured at cost and amortised cost are assessed at each of the reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss. |
| For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract. |
| For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation of the amount the company would receive for the asset if it were to be sold at the reporting date. |
| Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. |
| Valuation of investments |
| Long term investments are classified as fixed assets and are measured at market value at each balance sheet date. Gains and losses on remeasurement are recognised in the profit or loss for the period. Investments that can not be reliably valued are measured at costs, together with any additional consideration paid, less provision for impairment if required. |
| It is the directors' opinion that the investment in the limited liability partnership can not be reliably measured and therefore it has been measured at costs, together with any additional consideration paid, less provision for impairment if required. |
| 3. | TURNOVER |
| The turnover and loss before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business for the year ended 31 March 2019 is given below: |
| £ |
| This analysis is not considered to be applicable to the year ended 31 March 2020. |
| All turnover arose within the United Kingdom. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 31.3.20 | 31.3.19 |
| Direct & administration |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Emoluments etc |
| Pension contributions to money purchase schemes |
| 5. | OPERATING (LOSS)/PROFIT |
| The operating loss (2019 - operating profit) is stated after charging/(crediting): |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Profit on disposal of fixed assets | ( |
) | ( |
) |
| Goodwill amortisation |
| Amortisation of government grants |
| Operating lease rentals |
| 6. | AUDITORS' REMUNERATION |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Fees payable to the company's auditors for the audit of the company's financial statements |
12,600 |
12,600 |
| Taxation compliance services |
| Other non- audit services |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Bank loan interest |
| Interest payable |
| Hire purchase |
| 8. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the loss for the year was as follows: |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Current tax: |
| UK corporation tax | ( |
) | ( |
) |
| Deferred tax |
| Tax on loss |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Loss before tax | ( |
) | ( |
) |
| Loss multiplied by the standard rate of corporation tax in the UK of (2019 - |
( |
) |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation on ineligibles | 13,914 | 14,026 |
| expenditure |
| Effect of change in rate of taxation | 23,990 | (1,063 | ) |
| Other short term timing differences | 2,015 | 13,993 |
| charge prior year |
| Prior year over provision | (414 | ) | - |
| Total tax charge | 1,338 | 33,112 |
| 9. | DIVIDENDS |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Ordinary shares of £1 each |
| Final |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 10. | INTANGIBLE FIXED ASSETS |
| Goodwill |
| £ |
| COST |
| At 1 April 2019 |
| and 31 March 2020 |
| AMORTISATION |
| At 1 April 2019 |
| Amortisation for year |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| 11. | TANGIBLE FIXED ASSETS |
| Freehold |
| Freehold | Property | Birds of |
| property | - Spa | prey |
| £ | £ | £ |
| COST |
| At 1 April 2019 |
| Additions |
| Disposals | ( |
) |
| At 31 March 2020 |
| DEPRECIATION |
| At 1 April 2019 |
| Charge for year |
| Eliminated on disposal | ( |
) |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 11. | TANGIBLE FIXED ASSETS - continued |
| Office |
| Plant and | equipment | Motor |
| machinery | & furniture | vehicles | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 April 2019 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 31 March 2020 |
| DEPRECIATION |
| At 1 April 2019 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| Included in cost of land and buildings is freehold land of £ 240,000 (2019 - £ 240,000 ) which is not depreciated. |
| Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
| Motor |
| vehicles |
| £ |
| COST |
| At 1 April 2019 |
| Additions |
| At 31 March 2020 |
| DEPRECIATION |
| At 1 April 2019 |
| Charge for year |
| At 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 12. | FIXED ASSET INVESTMENTS |
| Unlisted |
| investments |
| £ |
| COST |
| At 1 April 2019 |
| and 31 March 2020 |
| NET BOOK VALUE |
| At 31 March 2020 |
| At 31 March 2019 |
| Unlisted Investments reflect the company's interest in The Coniston Shooting Ground LLP, an LLP registered in England and Wales (number OC304335). The Coniston Hotel Limited is a designated member of this LLP. |
| The aggregate capital and reserves of The Coniston Shooting Ground LLP at 31 March 2020 were £602,571 (2019: £633,435) and profit for the year ending 31 March 2020 was £103,737 (2019: £229,545). |
| 13. | STOCKS |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Stocks |
| The amount of stock recognised as an expense in cost of sales during the year is £974,633 (2019: £ |
| 1,064,060). |
| There are no write-downs or reversal of write-downs of stocks in 2020 or 2019. |
| 14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Prepayments and accrued income |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Bank loans and overdrafts (see note 17) |
| Hire purchase contracts (see note 18) |
| Trade creditors |
| Corporation tax |
| Social security and other taxes |
| Other creditors |
| Directors' loan accounts | 88,982 | 53,626 |
| Accruals and deferred income |
| The bank loans and overdrafts are secured by a debenture over the assets and undertakings of the company and by a first legal charge over its freehold property. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Bank loans (see note 17) |
| Hire purchase contracts (see note 18) |
| Other creditors |
| The bank loans are secured by a debenture over the assets and undertakings of the company and by a first legal charge over its freehold property. |
| 17. | LOANS |
| An analysis of the maturity of loans is given below: |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| 18. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable operating | leases |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Within one year |
| Between one and five years |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 19. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Bank overdrafts |
| Bank loans |
| Hire purchase contracts | 55,533 | 69,843 |
| Pension loan | 264,000 | 210,000 |
| The bank loans and overdrafts are secured by the Company's land and buildings and by a first legal charge over its freehold property. |
| Bank loans include the following: |
| - A loan outstanding of £5,107,059, repayable by January 2021. This loan bears interest at 3.059% |
| - A loan outstanding of £116,676 repayable by October 2022. The loan bears interest at 4.11% |
| - A loan outstanding of £912,865 repayable by February 2023. The loan bears interest at 3.248% |
| - A loan outstanding of £307,157 repayable by March 2023. The loan bears interest at 3.265% |
| The directors consider that the carrying amounts of the bank loans and overdraft approximate to their fair value. |
| In April 2019 a loan of £264,000 was received from The Bannister Family Pension Trust. The loan bears interest at 1% and is repayable over 5 years. The loan is secured by a first legal charge over Mr N W A Bannister's 70,000 company shares. |
| 20. | FINANCIAL INSTRUMENTS |
| 31.3.19 | 31.03.18 |
| £ | £ |
| Carrying amount of financial assets |
| Debt instruments measured at amortised cost | 379,086 | 504,898 |
| Carrying amount of financial liabilities |
| Measured at amortised cost | 9,131,664 | 8,832,431 |
| 21. | PROVISIONS FOR LIABILITIES |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Other timing differences | - | 32,580 |
| 431,560 | 429,807 |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 21. | PROVISIONS FOR LIABILITIES - continued |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2019 |
| Charge to Statement of Comprehensive Income during year |
| Balance at 31 March 2020 |
| 22. | ACCRUALS AND DEFERRED INCOME |
| 31.3.20 | 31.3.19 |
| £ | £ |
| Deferred government grants | 91,093 | 94,235 |
| 23. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.3.20 | 31.3.19 |
| value: | £ | £ |
| Ordinary | £1 | 700,000 | 700,000 |
| The Ordinary shares carry rights of one vote per share and have no restrictions on the distribution of dividends and the repayment of capital. |
| 24. | RESERVES |
| Retained | Share |
| earnings | premium | Totals |
| £ | £ | £ |
| At 1 April 2019 | 1,158,808 |
| Deficit for the year | ( |
) | - | ( |
) |
| At 31 March 2020 | 885,093 |
| 25. | PENSION COMMITMENTS |
| The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in independently administered funds. During the year £48,451 (2019: £32,299) has been charged to the profit and loss account in respect of pension contributions. Contributions totalling £18,110 (2019: £5,302) were payable to the fund at the balance sheet date and are included in creditors. |
| The Coniston Hotel Limited (Registered number: 03459771) |
| Notes to the Financial Statements - continued |
| for the year ended 31 March 2020 |
| 26. | RELATED PARTY DISCLOSURES |
| MJR Bannister and NWA Bannister |
| Directors of the company |
| During the year a loan subsisted between the company and MJR Bannister and NWA Bannister. During the year there were advances of £194,969 (2019: £359,514) made by the company and capital introduced of £230,325 (2019: £196,250). The loan included in creditors at the balance sheet date amounted to £88,981 (2019: £53,625). This loan is interest free and repayable on demand. |
| Included within trade creditors at the year end was an amount of £4,441 (2019: £8,274) due to MJR Bannister and an amount of £821 (2019: £11,781) due to NWA Bannister. |
| Coniston Estate |
| An entity that MJR Bannister trades as. |
| During the year the company paid rent of £111,300 (2019: £120,288). |
| The Coniston Shooting Ground LLP |
| An LLP in which both the company and MJR Bannister are members. |
| During the year the company received a discretionary profit share of £nil (2019: £nil) from The Coniston Shooting Ground LLP. |
| During the year the company used the facilities of The Coniston Shooting Ground LLP. The total value of purchases amounted to £118,070 (2019; £187,602). |
| Included in creditors at the year end is £22,581 (2019: £42,817) due to The Coniston Shooting Ground LLP. |
| Included in other creditors at the year end is £20,519 (2019: £42,940) due to The Coniston Shooting Ground LLP. |
| The company has no ability to control The Coniston Shooting Ground LLP. |
| Bannister Family Pension Trust |
| Included within other creditors is an amount of £264,000 (2019: £210,000) due to the Bannister Family Pension Trust of which NWA Bannister is a Trustee. |
| Unpaid Dividends |
| Included within other creditors are unpaid dividends for Louise Bolton of £750 and for Duncan Bowring of £8,750. |
| During the year, a total of key management personnel compensation of £ |
| 27. | ULTIMATE CONTROLLING PARTY |
| The controlling party is M J R Bannister. |