Lakeside Hotel Windermere Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05397101 (England and Wales)

Lakeside Hotel Windermere Limited

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 January 2019

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

DMB Snowdon

CJ Malpas

SECRETARY:

AG Bailes

REGISTERED OFFICE:

Haverthwaite Lodge

Haverthwaite

Ulverston

Cumbria

LA12 8AJ

REGISTERED NUMBER:

05397101 (England and Wales)

AUDITORS:

McMillan & Co LLP

Chartered Accountants and

Statutory Auditor

28 Eaton Avenue

Matrix Office Park

Buckshaw Village

Chorley

Lancashire

PR7 7NA

The directors present their strategic report of the company and the group for the year ended 31 January 2019.

REVIEW OF BUSINESS

The results for the year and financial position are shown in the annexed financial statements.

The Group uses Earning before Interest, Tax, Depreciation and Amortisation (EBITDA), Average Room Rate,

Revenue per Available Room (RevPAR) and Occupancy among its Key Performance Indicators.

2018 proved to be a very difficult year. After promising growth in food and beverage sales as a consequence

of the exceptional early summer weather, accomodation sales did not experience such a surge and sales

remained flat throughout the Autumn and Winter periods.

Maintaining occupancy whilst sustaining average room rate is the greatest challenge in the existing trading

climate and the group continues to investigate opportunities to develop the hotel facilities that will complement

its successful brand and attract wider markets.

The Group continues to repay its debts and invest heavily in fixed assets and refurbishment.

At 31 January 2019, the Group had net assets of £2.8m (2018: £2.8m).

PRINCIPAL RISKS AND UNCERTAINTIES

The directors continue to take steps to mitigate the principal risks and uncertainties facing the business. The

key business risks are considered to be:

- Risk of loss of regular customers. The current economic climate and occurrence of a flood could lead to a

loss of returning customers. The directors have assessed this risk and believe that the strength of the brand

and quality of the facilities substantially reduce this risk.

- Risk of further floods. The directors have reviewed the Group's response to the risk of floods and have

added further safeguards where appropriate. Appropriate insurance is maintained to cover all risks of any

further possible future flooding.

- Liquidity. The Group continues to fund its working capital by means of a facility, which was renewed for a

further 12 months in March 2019.

KEY PERFORMANCE INDICATORS

Gross margin 42.8% (2018: 45.4%) calculated as Gross Profit/Turnover.

Sales per employee £40,632 (2018: £39,118) calculated as Turnover/average number of employees.

ON BEHALF OF THE BOARD:

DMB Snowdon - Director

10 September 2019

The directors present their report with the financial statements of the company and the group for the year

ended 31 January 2019.

DIVIDENDS

No interim dividend was paid during the year. The directors have approved a final dividend on the ordinary A

shares of 168p per share.

The total distribution of dividends for the year ended 31 January 2019 will be £58,700.

FUTURE DEVELOPMENTS

Our cyclical refurbishment of hotel bedrooms and bathrooms will continue in the next year.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 February 2018 to the date

of this report.

DMB Snowdon

CJ Malpas

Other changes in directors holding office are as follows:

NR Talbot ceased to be a director after 31 January 2019 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the

financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law

the directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company

law the directors must not approve the financial statements unless they are satisfied that they give a true and

fair view of the state of affairs of the company and the group and of the profit or loss of the group for that

period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain

the company's and the group's transactions and disclose with reasonable accuracy at any time the financial

position of the company and the group and enable them to ensure that the financial statements comply with

the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the

group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the

Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps

that he ought to have taken as a director in order to make himself aware of any relevant audit information and

to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, McMillan & Co LLP, are deemed to be reappointed under section 487(2) of the Companies Act

2006.

ON BEHALF OF THE BOARD:

DMB Snowdon - Director

10 September 2019

Opinion

We have audited the financial statements of Lakeside Hotel Windermere Limited (the 'parent company') and

its subsidiaries (the 'group') for the year ended 31 January 2019 which comprise the Consolidated Income

Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance

Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity,

Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the

Financial Statements, including a summary of significant accounting policies. The financial reporting

framework that has been applied in their preparation is applicable law and United Kingdom Accounting

Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 January 2019 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditors'

responsibilities for the audit of the financial statements section of our report. We are independent of the

group in accordance with the ethical requirements that are relevant to our audit of the financial statements in

the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Group Strategic Report and the Report of the Directors, but does not include the financial statements and our

Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent

otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materially inconsistent with the financial statements or

our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such

material inconsistencies or apparent material misstatements, we are required to determine whether there is a

material misstatement in the financial statements or a material misstatement of the other information. If,

based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment

obtained in the course of the audit, we have not identified material misstatements in the Group Strategic

Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair

view, and for such internal control as the directors determine necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent

company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless the directors either intend to liquidate the group or the

parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our

Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of

the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's

members those matters we are required to state to them in a Report of the Auditors and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company's members as a body, for our audit work, for this report, or for the opinions we

have formed.

Neil McMillan FCA (Senior Statutory Auditor)

for and on behalf of McMillan & Co LLP

Chartered Accountants and

Statutory Auditor

10 September 2019

TURNOVER

4,835,167

5,007,147

Cost of sales

2,763,748

2,804,057

GROSS PROFIT

2,071,419

2,203,090

Administrative expenses

1,933,267

2,009,101

OPERATING PROFIT

4

138,152

193,989

Amounts written off investments

5

(2,338

)

14,381

140,490

179,608

Interest payable and similar expenses

6

26,707

21,169

PROFIT BEFORE TAXATION

113,783

158,439

Tax on profit

7

6,002

35,377

PROFIT FOR THE FINANCIAL YEAR

107,781

123,062

Profit attributable to:

Owners of the parent

107,781

123,062

PROFIT FOR THE YEAR

107,781

123,062

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

107,781

123,062

Total comprehensive income attributable to:

Owners of the parent

107,781

123,062

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

5,448,807

5,528,375

Investments

13

39,997

37,659

5,488,804

5,566,034

CURRENT ASSETS

Stocks

14

81,798

76,124

Debtors

15

164,089

121,936

Cash in hand

2,130

2,030

248,017

200,090

CREDITORS

Amounts falling due within one year

16

1,870,825

1,729,414

NET CURRENT LIABILITIES

(1,622,808

)

(1,529,324

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,865,996

4,036,710

CREDITORS

Amounts falling due after more than one year

17

(915,412

)

(1,108,766

)

PROVISIONS FOR LIABILITIES

21

(148,743

)

(175,184

)

NET ASSETS

2,801,841

2,752,760

CAPITAL AND RESERVES

Called up share capital

22

83,400

83,400

Capital redemption reserve

23

9,000

9,000

Other reserves

23

57,600

57,600

Retained earnings

23

2,651,841

2,602,760

SHAREHOLDERS' FUNDS

2,801,841

2,752,760

The financial statements were approved by the Board of Directors on 10 September 2019 and were signed on

its behalf by:

DMB Snowdon - Director

FIXED ASSETS

Intangible assets

11

-

-

Tangible assets

12

-

-

Investments

13

99,745

99,745

99,745

99,745

TOTAL ASSETS LESS CURRENT LIABILITIES

99,745

99,745

CREDITORS

Amounts falling due after more than one year

17

7,345

7,345

NET ASSETS

92,400

92,400

CAPITAL AND RESERVES

Called up share capital

22

83,400

83,400

Capital redemption reserve

23

9,000

9,000

SHAREHOLDERS' FUNDS

92,400

92,400

Company's profit for the financial year

58,700

68,388

The financial statements were approved by the Board of Directors on 10 September 2019 and were signed on its behalf by:

DMB Snowdon - Director

Called up

Capital

share

Retained

redemption

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 February 2017

83,400

2,548,086

9,000

57,600

2,698,086

Changes in equity

Dividends

-

(68,388

)

-

-

(68,388

)

Total comprehensive income

-

123,062

-

-

123,062

Balance at 31 January 2018

83,400

2,602,760

9,000

57,600

2,752,760

Changes in equity

Dividends

-

(58,700

)

-

-

(58,700

)

Total comprehensive income

-

107,781

-

-

107,781

Balance at 31 January 2019

83,400

2,651,841

9,000

57,600

2,801,841

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 February 2017

83,400

-

9,000

92,400

Changes in equity

Dividends

-

(68,388

)

-

(68,388

)

Total comprehensive income

-

68,388

-

68,388

Balance at 31 January 2018

83,400

-

9,000

92,400

Changes in equity

Dividends

-

(58,700

)

-

(58,700

)

Total comprehensive income

-

58,700

-

58,700

Balance at 31 January 2019

83,400

-

9,000

92,400

Cash flows from operating activities

Cash generated from operations

1

308,123

445,903

Interest paid

(26,707

)

(21,169

)

Tax paid

(33,664

)

(34,360

)

Net cash from operating activities

247,752

390,374

Cash flows from investing activities

Purchase of tangible fixed assets

(58,818

)

(150,925

)

Net cash from investing activities

(58,818

)

(150,925

)

Cash flows from financing activities

Loan repayments in year

(132,705

)

(133,817

)

Amount introduced by directors

200,000

150,000

Amount withdrawn by directors

(174,000

)

-

Equity dividends paid

(58,700

)

(68,388

)

Net cash from financing activities

(165,405

)

(52,205

)

Increase in cash and cash equivalents

23,529

187,244

Cash and cash equivalents at beginning of year

2

(447,426

)

(634,670

)

Cash and cash equivalents at end of year

2

(423,897

)

(447,426

)

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

£

£

Profit before taxation

113,783

158,439

Depreciation charges

138,386

155,402

Loss on disposal of fixed assets

-

562

(Gain) / loss of investment

(2,338

)

14,381

Finance costs

26,707

21,169

276,538

349,953

(Increase)/decrease in stocks

(5,674

)

1,297

(Increase)/decrease in trade and other debtors

(42,153

)

128,282

Increase/(decrease) in trade and other creditors

79,412

(33,629

)

Cash generated from operations

308,123

445,903

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in

respect of these Balance Sheet amounts:

Year ended 31 January 2019

31/1/19

1/2/18

£

£

Cash and cash equivalents

2,130

2,030

Bank overdrafts

(426,027

)

(449,456

)

(423,897

)

(447,426

)

Year ended 31 January 2018

31/1/18

1/2/17

£

£

Cash and cash equivalents

2,030

2,643

Bank overdrafts

(449,456

)

(637,313

)

(447,426

)

(634,670

)

1.	STATUTORY INFORMATION

Lakeside Hotel Windermere 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

General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The amounts in the financial statements have been rounded to the nearest £1.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is the total amount receivable by the group for goods and services provided, excluding VAT

and trade discounts.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business, is amortised evenly

over its useful life.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured

at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

No depreciation is provided on the group's freehold buildings as the directors consider that the lives of

these assets are so long and residual values, based on prices prevailing at the time of acquisition, are

sufficiently high that any depreciation would be immaterial. The directors consider that the aggregate

of their residual values is at least equal to the aggregate of their book values. Depreciation of all other

tangible assets is calculated to write down the cost less estimated residual value by instalments over

their expected useful lives. The rates and periods generally applicable are:

Plant in buildings

5% reducing balance

Fixtures and fittings

10%-33% reducing balance

Motor vehicles

25% reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual

arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any

contract that evidences a residual interest in the assets of the company after deducting all of its

liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the

period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's

pension scheme are charged to profit or loss in the period to which they relate.

Investments

Investments are stated at cost less any provisions for impairment.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

1,915,463

1,976,603

Social security costs

147,940

157,861

Other pension costs

67,961

73,745

2,131,364

2,208,209

The average number of employees during the year was as follows:

2019

2018

Management

7

7

Staff

112

121

119

128

2019

2018

£

£

Directors' remuneration

83,043

125,537