Company Registration No. 06188222 (England and Wales)
WARKWORTH DUNES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
PAGES FOR FILING WITH REGISTRAR
WARKWORTH DUNES LIMITED
COMPANY INFORMATION
Directors
T Hill
R J Hill
Company number
06188222
Registered office
P O Box 214
Oxcliffe Road
Heaton with Oxcliffe
Morecambe
Lancashire
LA4 9BB
Accountants
Mitchell Charlesworth LLP
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
WARKWORTH DUNES LIMITED
CONTENTS
Page
Balance sheet
2 - 3
Notes to the financial statements
4 - 9
WARKWORTH DUNES LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF WARKWORTH DUNES LIMITED FOR THE YEAR ENDED 31 DECEMBER 2017
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Warkworth Dunes Limited for the year ended 31 December 2017 set out on pages to 9 from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance.
This report is made solely to the Board of Directors of Warkworth Dunes Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of Warkworth Dunes Limited and state those matters that we have agreed to state to the Board of Directors of Warkworth Dunes Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at icaew.com. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Warkworth Dunes Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that Warkworth Dunes Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Warkworth Dunes Limited. You consider that Warkworth Dunes Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Warkworth Dunes Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Mitchell Charlesworth LLP
20 August 2018
Chartered Accountants
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
WARKWORTH DUNES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2017
31 December 2017
- 2 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
4,287,915
4,300,048
Current assets
Stocks
307,151
864,110
Debtors
4
1,689,976
413,030
Cash at bank and in hand
477,648
1,149,021
2,474,775
2,426,161
Creditors: amounts falling due within one year
5
(1,174,713)
(1,165,510)
Net current assets
1,300,062
1,260,651
Total assets less current liabilities
5,587,977
5,560,699
Creditors: amounts falling due after more than one year
6
(2,184,811)
(2,488,286)
Provisions for liabilities
7
(4,000)
(9,800)
Net assets
3,399,166
3,062,613
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
3,399,066
3,062,513
Total equity
3,399,166
3,062,613
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
WARKWORTH DUNES LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2017
31 December 2017
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 20 August 2018 and are signed on its behalf by:
T Hill
Director
Company Registration No. 06188222
WARKWORTH DUNES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2017
- 4 -
1
Accounting policies
Company information
Warkworth Dunes Limited is a private company limited by shares incorporated in England and Wales. The registered office is P O Box 214, Oxcliffe Road, Heaton with Oxcliffe, Morecambe, Lancashire, LA4 9BB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from the provision of site services is recognised by reference to the period to which the service relates. Revenue received in advance of the period to which it relates is treated as deferred income and included in creditors.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% per annum straight line basis
Plant and machinery
25% per annum straight line basis
Fixtures and fittings
25% per annum straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
WARKWORTH DUNES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 5 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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 an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
WARKWORTH DUNES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 6 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, and loans from related companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more or a right to pay less tax.
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
WARKWORTH DUNES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
1
Accounting policies
(Continued)
- 7 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 6 (2016 - 6).
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2017 and 31 December 2017
4,312,505
77,535
4,390,040
Depreciation and impairment
At 1 January 2017
43,252
46,740
89,992
Depreciation charged in the year
4,787
7,346
12,133
At 31 December 2017
48,039
54,086
102,125
Carrying amount
At 31 December 2017
4,264,466
23,449
4,287,915
At 31 December 2016
4,269,253
30,795
4,300,048
4
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
413,546
402,423
Amounts due from related undertakings
1,264,657
-
Other debtors
11,773
10,607
1,689,976
413,030
WARKWORTH DUNES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 8 -
5
Creditors: amounts falling due within one year
2017
2016
£
£
Bank loan
301,554
294,465
Trade creditors
10,576
1,993
Amounts due to related undertakings
50,000
73,903
Corporation tax
82,446
109,741
Other taxation and social security
98,061
108,954
Other creditors
632,076
576,454
1,174,713
1,165,510
6
Creditors: amounts falling due after more than one year
2017
2016
£
£
Bank loan
2,184,811
2,488,286
Amounts included above which fall due after five years are as follows:
Payable by instalments
900,382
1,235,078
Interest is charged on the bank loan at a variable rate of 2% over base rate. The loan is secured by a legal charge over the property held by the company, and an unlimited debenture. There is also a cross corporate guarantee with Easy Leisure Parks Limited.
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2017
2016
Balances:
£
£
Accelerated capital allowances
4,000
9,800
There was a decrease in deferred tax liability in the year due to fixed asset timing differences totalling £5,800.
WARKWORTH DUNES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2017
- 9 -
8
Called up share capital
2017
2016
£
£
Issued and fully paid
100 Ordinary shares of £1 each
100
100
9
Related party transactions
Mr T Hill is the son of one of the directors. Consultancy fees and commission of £21,733 (2016 £40,000) were paid to Mr T Hill during the year.
2017-12-312017-01-01falseCCH SoftwareCCH Accounts Production 2018.200No description of principal activity20 August 2018T HillR J Hill061882222017-01-012017-12-3106188222bus:Director12017-01-012017-12-3106188222bus:Director22017-01-012017-12-3106188222bus:RegisteredOffice2017-01-012017-12-31061882222017-12-31061882222016-12-3106188222core:LandBuildings2017-12-3106188222core:OtherPropertyPlantEquipment2017-12-3106188222core:LandBuildings2016-12-3106188222core:OtherPropertyPlantEquipment2016-12-3106188222core:CurrentFinancialInstruments2017-12-3106188222core:CurrentFinancialInstruments2016-12-3106188222core:Non-currentFinancialInstruments2017-12-3106188222core:Non-currentFinancialInstruments2016-12-3106188222core:ShareCapital2017-12-3106188222core:ShareCapital2016-12-3106188222core:RetainedEarningsAccumulatedLosses2017-12-3106188222core:RetainedEarningsAccumulatedLosses2016-12-3106188222core:LandBuildingscore:OwnedOrFreeholdAssets2017-01-012017-12-3106188222core:PlantMachinery2017-01-012017-12-3106188222core:FurnitureFittings2017-01-012017-12-3106188222core:LandBuildings2016-12-3106188222core:OtherPropertyPlantEquipment2016-12-31061882222016-12-3106188222core:LandBuildings2017-01-012017-12-3106188222core:OtherPropertyPlantEquipment2017-01-012017-12-3106188222bus:PrivateLimitedCompanyLtd2017-01-012017-12-3106188222bus:FRS1022017-01-012017-12-3106188222bus:AuditExemptWithAccountantsReport2017-01-012017-12-3106188222bus:SmallCompaniesRegimeForAccounts2017-01-012017-12-3106188222bus:FullAccounts2017-01-012017-12-31xbrli:purexbrli:sharesiso4217:GBP