Methodist Holiday Hotels Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 00361879 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2022

FOR

METHODIST HOLIDAY HOTELS LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

Diane M Uhalde

Richard J Kinder

Timothy J Boyes

SECRETARY:

Diane M Uhalde

REGISTERED OFFICE:

12-13 Alma Square

Scarborough

North Yorkshire

YO11 1JU

REGISTERED NUMBER:

00361879 (England and Wales)

FIXED ASSETS

Intangible assets

4

24,736

-

Property, plant and equipment

5

2,833,384

2,875,498

Investments

6

100

100

2,858,220

2,875,598

CURRENT ASSETS

Inventories

64,265

18,004

Debtors

7

104,485

155,047

Cash at bank and in hand

8

848,958

400,956

1,017,708

574,007

CREDITORS

Amounts falling due within one year

9

1,000,090

932,098

NET CURRENT ASSETS/(LIABILITIES)

17,618

(358,091

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,875,838

2,517,507

CREDITORS

Amounts falling due after more than one year

10

1,989,763

2,213,181

NET ASSETS

886,075

304,326

CAPITAL AND RESERVES

Called up share capital

13

750,000

750,000

Revaluation reserve

14

241,427

248,875

Retained earnings

(105,352

)

(694,549

)

SHAREHOLDERS' FUNDS

886,075

304,326

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 22 August 2022 and were signed on its behalf by:

Diane M Uhalde - Director

1.	STATUTORY INFORMATION

Methodist Holiday Hotels Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentational and functional currency is £ sterling.

Preparation of consolidated financial statements

The financial statements contain information about Methodist Holiday Hotels Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company has taken the option under Section 402 of the Companies Act 2006 not to prepare consolidated financial statement as it only has one dormant immaterial subsidiary.

Significant judgements and estimates

In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

Critical judgements in applying the company's policies

The management consider that no significant judgements have had to made in preparing these financial statements.

Critical accounting estimates and assumptions

1. Depreciation of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and future revenues generated from the assets. The assumptions used regarding useful economic lives are assessed annually and are amended where necessary.

The directors do not consider that any other estimates and assumptions used in the preparation of these financial statements have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Turnover

Turnover comprises sales to customers of goods and services net of value added tax. Revenue from the sale of services is recognised when the services are performed and revenue from goods are recognised on the transfer of significant risks and rewards of ownership.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2004, is being amortised evenly over its estimated useful life of fourteen years.

The goodwill became fully amortised in a previous financial period.

Development costs

Website development costs are capitalised as intangibles assets and are amortised evenly over their estimated useful life of three years.

Tangible fixed assets and depreciation

Depreciation of fixed assets has been provided at various rates which are anticipated to amortise the cost or valuation less residual value over the assets' expected useful lives. The freehold land and buildings cost comprise a previous revaluation as deemed cost on transition to FRS 102. Indicative annual rates are:-

Freehold land

0%

Freehold property

straight line over 50 years

Plant & equipment, fixtures & fittings

5% - 25% on a straight line basis

Motor vehicles

20% on a straight line basis

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less impairment.

Inventories

Inventories are valued at the lower of cost and estimated selling price less costs to sell, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Leases

Assets acquired under finance lease agreements, including hire purchase agreements, are capitalised and the corresponding liability is included in creditors. Finance lease interest is charged to the income statement on a straight basis over the period of the agreement. Operating lease rentals are charged against profits of the period to which they relate.

Pension costs and other post-retirement benefits

Payments to defined contribution pension schemes are charged as an expense in the period to which they relate.

Grants

Where grants are received to fund the acquisition of fixed assets, the relevant assets are capitalised at cost and depreciated in accordance with the above policy. The grant is held in other creditors and released to the income statement over the estimated lives of the assets on the accrual basis.

Grants are recognised using the accruals model. Revenue grants are recognised as other operating income on a systematic basis over the period in which the related costs for which the grants are intended to compensate are so recognised. Grants receivable as compensation for expenses or losses already incurred, or for the purpose of receiving immediate financial support, are recognised in other operating income in the period in which they become receivable.

Going concern

The directors have considered the financial resources and commitments of the company and concluded that they have sufficient resources to meet liabilities as they fall due. The directors therefore consider it appropriate to prepare the financial statements on the going concern basis.

The Directors have specifically obtained assurance from the company bankers of their continued support for the forthcoming year.

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade, other accounts receivable and payable and loans to related parties.

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.

Debt instruments such as loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised costs using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 51 (2021 - 45 ) .

4.	INTANGIBLE FIXED ASSETS

Development

Goodwill

costs

Totals

£

£

£

COST

At 1 May 2021

200,000

12,000

212,000

Additions

-

25,500

25,500

At 30 April 2022

200,000

37,500

237,500

AMORTISATION

At 1 May 2021

200,000

12,000

212,000

Amortisation for year

-

764

764

At 30 April 2022

200,000

12,764

212,764

NET BOOK VALUE

At 30 April 2022

-

24,736

24,736

At 30 April 2021

-

-

-

5.	PROPERTY, PLANT AND EQUIPMENT

Plant and

equipment,

fixtures

Freehold

and

Motor

property

fittings

vehicles

Totals

£

£

£

£

COST

At 1 May 2021

2,758,045

1,901,042

-

4,659,087

Additions

15,139

132,603

10,000

157,742

Disposals

-

(9,083

)

-

(9,083

)

At 30 April 2022

2,773,184

2,024,562

10,000

4,807,746

DEPRECIATION

At 1 May 2021

393,808

1,389,781

-

1,783,589

Charge for year

62,738

131,317

1,667

195,722

Eliminated on disposal

-

(4,949

)

-

(4,949

)

At 30 April 2022

456,546

1,516,149

1,667

1,974,362

NET BOOK VALUE

At 30 April 2022

2,316,638

508,413

8,333

2,833,384

At 30 April 2021

2,364,237

511,261

-

2,875,498

The net book value of property, plant and equipment includes £ 50,914 (2021 - £ 63,637 ) in respect of assets held under hire purchase contracts and finance leases.

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 May 2021

and 30 April 2022

100

NET BOOK VALUE

At 30 April 2022

100

At 30 April 2021

100

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Other debtors

104,485

155,047

8.	CASH AT BANK AND IN HAND

2022

2021

£

£

Bank current account

847,278

399,276

Cash in hand

1,680

1,680

848,958

400,956

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans (see note 11)

164,453

104,725

Hire purchase contracts and finance leases

20,704

35,090

Trade creditors

143,789

62,489

Taxation and social security

76,121

19,832

Other creditors

595,023

709,962

1,000,090

932,098

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans (see note 11)

1,923,789

2,088,154

Hire purchase contracts and finance leases

3,811

24,515

Other creditors

62,163

100,512

1,989,763

2,213,181

Amounts falling due in more than five years:

Repayable by instalments

Bank loans

-

244,452

11.

LOANS

An analysis of the maturity of loans is given below:

2022

2021

£

£

Amounts falling due within one year or on demand:

Bank loans

164,453

104,725

Amounts falling due between one and two years:

Bank loans - 1 to 2 years

166,606

164,453

Amounts falling due between two and five years:

Bank loans - 2 to 5 years

1,757,183

1,679,249

Amounts falling due in more than five years:

2022

2021

£

£

Amounts falling due in more than five years:

Repayable by instalments

Bank loans

-

244,452

12.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Hire purchase contracts and finance leases

24,515

59,605

Bank loans

1,641,355

1,712,880

1,665,870

1,772,485

Bank borrowings are secured by legal mortgages over the freehold property, and fixed and floating charges over all other company assets. Hire purchase contracts and other loans are secured on the assets to which they relate.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

750,000

Ordinary

£1

750,000

750,000

14.

RESERVES

Revaluation

reserve

£

At 1 May 2021

248,875

Realised in period

(7,448

)

At 30 April 2022

241,427

15.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Steven Aitken (Senior Statutory Auditor)

for and on behalf of Smailes Goldie Watson Limited

16.	PENSION COMMITMENTS

The pension cost charge represents contributions payable by the company to the scheme and amounted to £66,075 (2021 - £61,417). The balance outstanding at the year end was £3,638 (2021 - £2,139).

17.	CONTINGENT LIABILITIES

At the date of these financial statements, the company remains potentially liable for rent costs on a property it previously leased and has since vacated. The lease on the property was sold to a third party in 2014 however should the new tenant vacate the property prior to the lease expiring, the company will become liable to pay the appropriate rental costs. The lease is due to expire on 19 May 2036 and the maximum potential rent liability in 2014 was £45,000 per annum linked to rpi increases.