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Registered number: 10164326
THE BEECH HUT LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 4 JULY 2021
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THE BEECH HUT LIMITED
REGISTERED NUMBER: 10164326
BALANCE SHEET
AS AT 4 JULY 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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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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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 comprehensive income 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 on 30 June 2022.
The notes on pages 2 to 7 form part of these financial statements.
Page 1
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 4 JULY 2021
The Beech Hut Limited is a Company limited by shares, it was incorporated in England and Wales where it is also registered. The registered office of the Company is 9 Akeman Street, Tring, HP23 6AA which also is the Company's principal place of business.
2.Accounting policies
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Basis of preparation of financial statements
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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 is reliant on the support of the wider Oakman Group.
Detailed cashflow projections have been prepared for the Group to June 2023 including a sensitised version to reflect the impact a material reduction of trade would have on the Group’s cash position. These projections show that Group has sufficient cash to operate until at least June 2023 and, as such, the Directors have prepared the financial statements on a going concern basis.
The forecasts assume that a CBIL overdraft provided by Santander which is repayable on demand will not be called in and that other facilities provided by Santander, which are repayable in full in December 2022, can either be extended or refinanced.
The Directors are confident in this assumption on the basis that:
• Santander UK plc have confirmed that they currently have no intention to withdraw the CBILS facility.
• Both Santander UK Plc and Barclays Plc have issued credit approved terms for a new, larger bilateral banking facility which is expected to be drawn shortly after the signing of these financial statements.
• Given the quality of the Group’s estate and the industry leading performance of the business, it is reasonable to assume that it could refinance the Santander facilities with another lender in the unlikely event that either the CBIL was called in or the new bilateral facility from Santander and Barclays did not complete.
Analysis of the sensitised cash flow projections indicate that there may be a requirement to raise a further £2m and the Directors are in discussion with a provider. The Directors are confident that agreement will be reached and that the funds will be available as required.
Despite the Directors confidence in the forecasts, there is a recognition that material uncertainty exists regarding the assumptions that the CBILS facility will not be called in, that the Santander facilities will be renegotiated by December 2022 and that the £2m loan will be raised if necessary.
If these assumptions proved to be incorrect, significant doubt would be cast on the wider Group’s ability to support the Company and therefore the Company’s ability to continue as a going concern.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Page 2
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 4 JULY 2021
2.Accounting policies (continued)
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical 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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The companies assets are yet to be brought into use therefore no depreciation has been charged. Once in use, depreciation is to be charged on the following basis:
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50 years (100% residual value)
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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 disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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.
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 ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each
Page 3
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 4 JULY 2021
2.Accounting policies (continued)
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Financial instruments (continued)
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reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
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 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 best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates. The Director considers the valuation of fixed assets to be a critical estimate and judgement applicable to the financial statements.
Tangible Fixed Assets
The estimated useful economic lives of tangible fixed assets are based on management's judgement and experience. When management identifies that actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted retrospectively. Due to the significance of tangible fixed asset investment to the company, variations between actual and estimated useful economic lives could impact operating results both positively and negatively, although historically few changes to estimated useful economic lives have been required.
The group is required to evaluate the carrying values of tangible fixed assets for impairment whenever circumstances indicate, in management's judgement, that the carrying value of such assets may not be recoverable. An impairment review requires management to make subjective judgements concerning the cash flows, growth rates and discount rates of the cash generating units under review.
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The Company has no employees other than the Directors, who did not receive any remuneration (2020 - £NIL).
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Page 4
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 4 JULY 2021
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Charge for the year on owned assets
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A charge has been placed on the property in relation to the loan disclosed within creditors.
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Page 5
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 4 JULY 2021
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Accruals and deferred income
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Amounts owed to group undertakings are interst free and repayable on demand.
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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Page 6
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 4 JULY 2021
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Other loans
The other loan was drawn down with Buchanan (H) Limited on 12 March 2020. It was repayable on 31 December 2021. Interest is payable at the redemption of the loan at a rate of 9% per annum. The loan is secured by a fixed and floating charge over the Company's freehold property.
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Post balance sheet events
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A loan from Buchanan (H) Limited was refinanced with a new £3.25m from W E Black Finance Limited in April 2022. The new loan carries an interest rate of 8% per annum, is secured against the company’s assets and is repayable in April 2024.
The immediate parent in Oakman Inns and Restaurants Limited. The ultimate controlling party is Oakman Group Plc. Both of these companies are registered at 9 Akeman Street, Tring, Hertfordshire, HP23 6AA. Oakman Group Plc prepares consolidated accounts which include the results of this company.
The auditors' report on the financial statements for the year ended 4 July 2021 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to note 2.2 in the financial statements, which indicates that the Company is reliant on group support. The wider Group has an overdraft repayable on demand and there is uncertainty over the future financing. 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 resepect of this matter.
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The audit report was signed on 30 June 2022 by Andrew Ball (Senior Statutory Auditor) on behalf of Haysmacintyre LLP.
Page 7
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