West Tower Country House Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04077291 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2019

FOR

WEST TOWER COUNTRY HOUSE LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

P C Bolton

D S Leathem

SECRETARIES:

D S Leathem

L Bolton

REGISTERED OFFICE:

16 Bazil Lane

Overton

Morecambe

Lancashire

LA3 3JB

REGISTERED NUMBER:

04077291 (England and Wales)

AUDITORS:

Fairhurst

Statutory Auditor

Chartered Accountants

Douglas Bank House

Wigan Lane

Wigan

Lancashire

WN1 2TB

BANKERS:

NatWest Bank Plc

11 Spring Gardens

Manchester

M2 1FB

SOLICITORS:

Hill Dickinson LLP

No.1 St Paul's Square

Liverpool

L3 9SJ

FIXED ASSETS

Tangible assets

4

6,246,470

5,188,729

CURRENT ASSETS

Stocks

5

11,238

16,605

Debtors

6

451,832

184,183

Cash at bank and in hand

1,361,560

1,266,004

1,824,630

1,466,792

CREDITORS

Amounts falling due within one year

7

1,335,121

1,365,858

NET CURRENT ASSETS

489,509

100,934

TOTAL ASSETS LESS CURRENT LIABILITIES

6,735,979

5,289,663

CREDITORS

Amounts falling due after more than one year

8

-

(9,477

)

PROVISIONS FOR LIABILITIES

10

(199,504

)

(50,492

)

NET ASSETS

6,536,475

5,229,694

CAPITAL AND RESERVES

Called up share capital

2,500,000

2,500,000

Revaluation reserve

11

3,594,918

2,665,388

Retained earnings

441,557

64,306

6,536,475

5,229,694

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 by the Board of Directors on 14 December 2019 and were signed on its behalf by:

D S Leathem - Director

1.	STATUTORY INFORMATION

West Tower Country House 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 as modified by the revaluation of certain assets.

Turnover

Turnover represents sales of goods and services supplied, excluding value added tax and trade discounts.

Income, in respect of accommodation is recognised each night the customer stays whilst other sales, including

deposits, venue hire, restaurant and bar sales are recognised on the day of service.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are stated at cost or valuation less depreciation and any impairment.

No depreciation is provided on the freehold property. It is company practice to maintain these assets in a

continual state of sound repair and to make improvements thereto from time to time and accordingly the directors

consider that the lives of these assets are so long, and their residual values (based on price prevailing at the time

of acquisition or subsequent valuations) are so high, that their cumulative depreciation is insignificant.

Impairment of assets

At each reporting date assets are reviewed to determine whether there is any indication that those assets have

suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any

affected asset is estimated and compared with its carrying amount. If the recoverable amount is lower, the

carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised

immediately in the profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised

estimate of its recoverable amount, but not to exceed the amount that would have been determined had no

impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised

immediately in the profit or loss.

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

Short term financial assets, including trade and other debtors and cash and bank balances, are measured at the

transaction price. Financial assets that have no stated interest rate and are recoverable within one year shall be

measured at the undiscounted amount due.

Short term financial liabilities, including trade and other creditors, are measured at the transaction price.

Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the

undiscounted amount due.

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 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 obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

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

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

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 47 (2018 - 36 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

COST OR VALUATION

At 1 April 2018

5,019,048

1,014,684

209,498

Additions

-

5,333

23,244

Revaluations

1,080,952

-

-

At 31 March 2019

6,100,000

1,020,017

232,742

DEPRECIATION

At 1 April 2018

-

967,065

124,927

Charge for year

-

17,387

41,656

Eliminated on disposal

-

-

-

At 31 March 2019

-

984,452

166,583

NET BOOK VALUE

At 31 March 2019

6,100,000

35,565

66,159

At 31 March 2018

5,019,048

47,619

84,571

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1 April 2018

22,995

36,278

6,302,503

Additions

33,075

-

61,652

Disposals

(22,995

)

-

(22,995

)

Revaluations

-

-

1,080,952

At 31 March 2019

33,075

36,278

7,422,112

DEPRECIATION

At 1 April 2018

8,144

13,638

1,113,774

Charge for year

7,365

7,916

74,324

Eliminated on disposal

(12,456

)

-

(12,456

)

At 31 March 2019

3,053

21,554

1,175,642

NET BOOK VALUE

At 31 March 2019

30,022

14,724

6,246,470

At 31 March 2018

14,851

22,640

5,188,729

The parent company, West Tower Property Limited, has a bank loan which is secured by way of a debenture

over all the assets of West Tower Country House Limited, a first legal charge over the property held by West

Tower Country House Limited and a cross guarantee between the bank and West Tower Country House Limited.

Cost or valuation at 31 March 2019 is represented by:

Fixtures

Freehold

Plant and

and

property

machinery

fittings

£

£

£

Valuation in 2013

518,575

-

-

Valuation in 2014

1,147,424

-

-

Valuation in 2019

1,080,952

-

-

Cost

3,353,049

1,020,017

232,742

6,100,000

1,020,017

232,742

Motor

Computer

vehicles

equipment

Totals

£

£

£

Valuation in 2013

-

-

518,575

Valuation in 2014

-

-

1,147,424

Valuation in 2019

-

-

1,080,952

Cost

33,075

36,278

4,675,161

33,075

36,278

7,422,112

The freehold property was valued on 21 June 2019 by CBRE Limited (Registered Valuers), on an open market

fair value basis at £6,100,000, and this valuation has been relied upon by the directors as at 31 March 2019.

Additional accommodation was under construction at the year end and has now been completed. A subsequent

valuation on 5 November 2019 values the enhanced property at £6,650,000 and this will be reflected in the

accounts at 31 March 2020.

The historical cost of the freehold property included at valuation is as follows:

2019

2018

£

£

Cost

3,353,049

3,353,049

Accumulated depreciation

(1,498,509

)

(1,431,448

)

1,854,540

1,921,601

5.

STOCKS

2019

2018

£

£

Stocks

11,238

16,605

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

60

327

Amounts owed by group undertakings

210,866

45,057

Other debtors

131,089

-

Prepayments and accrued income

109,817

138,799

451,832

184,183

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Hire purchase contracts

-

4,719

Trade creditors

185,954

155,389

Tax

115,032

100,149

Social security and other taxes

57,167

63,077

Other creditors

882,226

933,437

Accruals and deferred income

94,742

109,087

1,335,121

1,365,858

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Hire purchase contracts

-

9,477

9.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Hire purchase

-

14,196

Hire purchase contracts are secured on the assets to which they relate.

10.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

199,504

50,492

Deferred

tax

£

Balance at 1 April 2018

50,492

Credit to Income Statement during year

(2,410

)

Charge to Revaluation Reserve

151,422

Balance at 31 March 2019

199,504

11.

RESERVES

Group

Revaluation

reserve

£

Revaluation in year

1,080,952

Deferred tax on revaluation

(151,422

)

At 31 March 2019

929,530

The revaluation reserve relates to the freehold property.

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

The Report of the Auditors was unqualified.

John B S Fairhurst BA (Hons) FCA (Senior Statutory Auditor)

for and on behalf of Fairhurst

13.	GUARANTEES AND OTHER FINANCIAL COMMITMENTS

The total amount of guarantees and other financial commitments is £3,561,255 (2018 - £3,569,906) which

includes a cross guarantee of £3,550,000 (2018 - £3,550,000) on behalf of the parent company, West Tower

property Limited, in relation to a bank loan in favour of the lender.

14.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with wholly owned subsidiaries within the group.

15.	ULTIMATE CONTROLLING PARTY

16.	ULTIMATE PARENT COMPANY

The ultimate parent is West Tower Property Limited, a company registered in England & Wales. The company's

registered office is 16 Bazil Lane, Overton, Morecambe, Lancashire, LA3 3JB and the principle place of

business is Mill Lane, Aughton, Ormskirk, L39 7HJ.