Castle Hotel (Dartmouth) Limited - Period Ending 2018-06-30

Castle Hotel (Dartmouth) Limited

Annual Report and Unaudited Financial Statements
Year Ended 30 June 2018

Registration number: 03212205

Castle Hotel (Dartmouth) Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 10

Castle Hotel (Dartmouth) Limited

Company Information

Directors

Mr N J M Way Mrs A E Way

Company secretary

Mrs A E Way

Registered office

The Royal Castle Hotel 11 The Quay Dartmouth Devon TQ6 9PS

Accountants

Francis Clark LLP Sigma House Oak View Close Edginswell Park Torquay Devon TQ2 7FF

Page 1

Castle Hotel (Dartmouth) Limited

Balance Sheet

30 June 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	5	970,064	1,555,761
Current assets
Stocks		35,444	36,394
Debtors	6	886,205	852,305
Cash at bank and in hand		408,337	91,092
		1,329,986	979,791
Creditors: Amounts falling due within one year	7	(940,723)	(1,312,891)
Net current assets/(liabilities)		389,263	(333,100)
Total assets less current liabilities		1,359,327	1,222,661
Creditors: Amounts falling due after more than one year	7	(114,037)	(269,908)
Provisions for liabilities		(48,228)	(50,447)
Net assets		1,197,062	902,306
Capital and reserves
Called up share capital		2	2
Profit and loss account		1,197,060	902,304
Total equity		1,197,062	902,306

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 2

Castle Hotel (Dartmouth) Limited

Balance Sheet

30 June 2018

For the financial year ending 30 June 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 24 January 2019 and signed on its behalf by:
 

......................................... Mr N J M Way Director

Company Registration Number: 03212205

The notes on pages 4 to 10 form an integral part of these financial statements.

Page 3

Castle Hotel (Dartmouth) Limited

Notes to the Financial Statements

Year Ended 30 June 2018

1	General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
The Royal Castle Hotel
11 The Quay
Dartmouth
Devon
TQ6 9PS

These financial statements were authorised for issue by the Board on 24 January 2019.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

The company recognises revenue when the value of goods and services provided to date can be reliably measured. Accommodation sales, including deposits received in advance, are recognised at the date of stay.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Page 4

Castle Hotel (Dartmouth) Limited

Notes to the Financial Statements

Year Ended 30 June 2018

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold property	1% straight line
Leasehold property	1% - 2% straight line
Fixtures and fittings	15% reducing balance
Motor vehicles	25% reducing balance

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	100% straight line

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress 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, stocks are assessed for impairment. If stocks are 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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Page 5

Castle Hotel (Dartmouth) Limited

Notes to the Financial Statements

Year Ended 30 June 2018

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 85 (2017 - 79).

Page 6

Castle Hotel (Dartmouth) Limited

Notes to the Financial Statements

Year Ended 30 June 2018

4	Intangible assets

	Goodwill  £	Total £
Cost or valuation
At 1 July 2017	1	1
At 30 June 2018	1	1
Amortisation
At 1 July 2017	1	1
At 30 June 2018	1	1
Carrying amount
At 30 June 2018	-	-
At 30 June 2017	-	-

Page 7

Castle Hotel (Dartmouth) Limited

Notes to the Financial Statements

Year Ended 30 June 2018

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 July 2017	1,339,469	951,330	32,186	2,322,985
Additions	-	32,345	-	32,345
Disposals	(557,207)	-	(10,881)	(568,088)
At 30 June 2018	782,262	983,675	21,305	1,787,242
Depreciation
At 1 July 2017	91,532	659,665	16,027	767,224
Charge for the year	8,052	48,608	3,994	60,654
Eliminated on disposal	-	-	(10,700)	(10,700)
At 30 June 2018	99,584	708,273	9,321	817,178
Carrying amount
At 30 June 2018	682,678	275,402	11,984	970,064
At 30 June 2017	1,247,937	291,665	16,159	1,555,761

Included within the net book value of land and buildings above is £521,276 (2017 - £527,255) in respect of freehold land and buildings and £161,402 (2017 - £720,682) in respect of long leasehold land and buildings.
 

6

Debtors

	2018  £	2017  £
Trade debtors	5,920	8,859
Other debtors	861,110	825,107
Prepayments	19,175	18,339
	886,205	852,305

Details of non-current trade and other debtors

Included within other debtors is a long-term loan for £293,797 (2017 - £Nil) of which £278,322 is classified as non current.

Page 8

Castle Hotel (Dartmouth) Limited

Notes to the Financial Statements

Year Ended 30 June 2018

7

Creditors

Creditors: amounts falling due within one year

	Note	2018  £	2017  £
Due within one year
Loans and borrowings	9	69,952	140,693
Trade creditors		112,646	160,292
Corporation tax		60,658	59,567
Social security and other taxes		133,780	135,009
Outstanding defined contribution pension costs		-	3,045
Other creditors		512,294	723,195
Accrued expenses		51,393	91,090
		940,723	1,312,891

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	9	114,037	269,908

8	Share capital

Allotted, called up and fully paid shares

	2018		2017
	No.	£	No.	£
Ordinary shares of £1 each	2	2	2	2

Page 9

Castle Hotel (Dartmouth) Limited

Notes to the Financial Statements

Year Ended 30 June 2018

9	Loans and borrowings

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	69,952	140,693

	2018 £	2017 £
Loans and borrowings due after one year
Bank borrowings	114,037	269,908

Security has been given on the company's loans and borrowings by a charge held over the property and assets of the Royal Castle Hotel.

10	Related party transactions

Advances to directors

2018	At 1 July 2017 £	Advances to director £	Repayments by director £	At 30 June 2018 £
Mr N J M Way
Total interest free advances made during the year	155,249	-	(155,249)	-
Mrs A E Way
Total interest free advances made during the year	155,249	-	(155,249)	-

 

2017	At 1 July 2016 £	Advances to director £	Repayments by director £	At 30 June 2017 £
Mr N J M Way
Total interest free advances made during the year	(86,609)	318,430	(76,572)	155,249
Mrs A E Way
Total interest free advances made during the year	(86,609)	318,430	(76,572)	155,249

Page 10