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Registered number: 10164326
THE BEECH HUT LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE PERIOD ENDED 2 JULY 2023
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THE BEECH HUT LIMITED
REGISTERED NUMBER: 10164326
BALANCE SHEET
AS AT 2 JULY 2023
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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 31 January 2024.
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THE BEECH HUT LIMITED
REGISTERED NUMBER: 10164326
BALANCE SHEET (CONTINUED)
AS AT 2 JULY 2023
The notes on pages 3 to 10 form part of these financial statements.
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
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 Saxon House, 211 High Street, Berkhamsted, HP4 1AD. Its principal trading address is the Grand Junction, 13 High Street, Buckingham MK18, 1NT.
Post period end, the Directors have restructured the intercompany loans within Oakman Group and have “hived up” the trade and assets of the Company net of liabilities by transferring them to Oakman Dev Limited at net book value on 3 July 2023. Following this “hive up” the Company no longer trades. See note 2.2 for further information.
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:
In preparing the financial statements, the Directors have made the assessment of the entity’s ability to continue as a going concern.
Post period end, the Directors have restructured the intercompany loans within Oakman Group and have “hived up” the trade and assets of the Company net of liabilities by transferring them to Oakman Dev Limited at NBV on 4 July 2023. Following this “hive up” the Company no longer trades.
For this reason, the Directors have concluded that the Company is no longer a going concern and these financial statements have been prepared on this basis. No material adjustments arose as a result of ceasing to apply the going concern basis.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable for the sale of food and beverage in the pub operated by the Company excluding value added tax, other sales taxes and discounts.
Grants are accounted under the accruals model as permitted by FRS 102. The grants received in the year are revenue based grants under the Coronavirus Job Retention Scheme (CJRS) and they have been recognised as other operating income in the Statement of Comprehensive Income. The amounts recognised to 3 July 2022 reflect the employees covered by CJRS in the period leading up to this date, while the pub was closed due to the Covid-19 pandemic. Grants have also been received under the Retail, Hospitality and Tourism scheme. These grants have been recognised in the period in which the company became entitled to the grant.
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
2.Accounting policies (continued)
Finance costs are charged to profit or loss 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.
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.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
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.
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
2.Accounting policies (continued)
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. However, if the arrangements of a short-term instrument constitute a financing
transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an
out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially
at the present value of future cash flows discounted at a market rate of interest for a similar debt
instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the
case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each
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.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet 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. The impairment loss is recognised immediately in profit or loss.
Smallware inventories are held at cost which is determined by reference to the quantity in issue to each site. Smallware inventory relates to small value items which have short life spans relating to kitchen and bar equipment. These items are recorded under inventory as they are utilised in providing food and beverage to customers.
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
2.Accounting policies (continued)
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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Tangible Fixed Assets
The estimated useful economic lives and residual values of tangible fixed assets are based on management's judgement and experience. When management identifies that the actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively. Due to the significance of tangible fixed asset investment to the company, variations between actual and estimated useful economic lives, and variations between actual and estimated residual value, could impact operating results both positively and negatively, although historically few changes to estimated useful economic lives have been required.
The Company 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. Management concluded that no impairment was required in respect of fixed assets as at 2 July 2023 on the basis of the known information at this date.
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The employees are contracted with Oakman Inns and Restaurants Limited, an entity within the Oakman Group. The costs are recharged to the Company and this is what the employee numbers represents.
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The average monthly number of employees, including directors, during the period was 47 (2022 - 20).
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Page 6
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
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Charge for the period on owned assets
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A charge has been placed on the property in relation to the loan disclosed within note 11.
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Page 7
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts due from group undertakings are unsecured, interest free and repayable on demand.
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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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Amounts owed to related parties
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
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Page 8
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
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Creditors: Amounts falling due after more than one year
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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 2-5 years
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The loan from W E Black Finance Limited was drawn down in April 2022. The loan carries an interest rate of 8% per annum, payable monthly, is secured against the company’s assets and is repayable in April 2024.
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The Group within which the Company sits operates a defined contributions pension scheme for all employees. The assets of the scheme are held separately from those of the Group in an independently administered fund.
The pension cost charge represents contributions payable by the Company to the fund and amounted to £13,064 (2022 - £1,118). Contributions payable to the fund at the reporting date are recognised by Oakman Inns and Restaurants Limited where the employees are contracted.
Page 9
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THE BEECH HUT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 2 JULY 2023
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Related party transactions
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The Company has taken advantage of the exemptions provided by Section 33.1A of FRS 102 not to disclose related party transactions with wholly owned subsidiary undertakings of the group.
Included within creditors is £144 (2022: £nil) owed to companies under common control and due to mtual directors.
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Post balance sheet events
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On 3 July 2023 the Directors decided to restructure the intercompany loans within Oakman Group and “hive up” the trade and assets of the Company, net of liabilities by transferring them to Oakman Dev Limited. Following this “hive up” the Company no longer trades and the intention of the Directors is for this entity to be liquidated. Therefore these accounts have been prepared on a basis other than going concern.
The immediate parent in Oakman Inns and Restaurants Limited. The ultimate controlling party is Oakman Group Plc. Both of these companies are registered at Saxon House, 211 High Street, Berkhamsted, Hertfordshire, United Kingdom, HP4 1AD. Oakman Group Plc prepares consolidated accounts which include the results of this company.
The auditors' report on the financial statements for the period ended 2 July 2023 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. This explains that the Directors have restructured the ntercompany loans within Oakman Group and have “hived up” the trade and assets of the Company net of liabilities by transferring them to Oakman Dev Limited on 3 July 2023. Following this “hive up” the Company no longer trades.
For this reason, the Directors have concluded that the Company is no longer a going concern and therefore these financial statements have been prepared on a basis other than going concern as described in noted 2.3. Our opinion is not modified in respect of this matter.
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The audit report was signed on 31 January 2024 by Isabelle Shepherd (Senior Statutory Auditor) on behalf of Haysmacintyre LLP.
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