Evergreen Lodge Limited - Period Ending 2019-03-31

Registration number: 04414960

Prepared for the registrar

Evergreen Lodge Limited

Statutory Financial Statements

for the Year Ended 31 March 2019

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Evergreen Lodge Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Evergreen Lodge Limited

Company Information

Directors

R Bloom H Newman

Company secretary

E Bloom K Newman

Registered office

Suite 7 Arkleigh Mansions 200 Brent Street London NW4 1BJ

Bankers

Bank of Scotland PLC Edinburgh Scotland EH11 1YH

Accountants

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

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Evergreen Lodge Limited

(Registration number: 04414960)
Balance Sheet as at 31 March 2019

	Note	2019  £	2018  £
Fixed assets
Intangible assets	5	37,627	48,377
Tangible assets	6	566,494	572,960
		604,121	621,337
Current assets
Debtors: Amounts falling due within one year	7	336,008	283,703
Debtors: Amounts falling due after more than one year	7	777,188	1,153,875
Cash at bank and in hand		163,847	732,162
		1,277,043	2,169,740
Creditors: Amounts falling due within one year	8	(740,813)	(812,421)
Net current assets		536,230	1,357,319
Total assets less current liabilities		1,140,351	1,978,656
Deferred tax liabilities		(7,423)	(6,517)
Net assets		1,132,928	1,972,139
Capital and reserves
Called up share capital		10	10
Profit and loss account		1,132,918	1,972,129
Total equity		1,132,928	1,972,139

For the financial year ending 31 March 2019 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 in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 17 December 2019 and signed on its behalf by:
 

.........................................

R Bloom
Director

.........................................

H Newman
Director

The notes on pages 3 to 9 form an integral part of these financial statements.
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Evergreen Lodge Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

1

General information

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

The address of its registered office is:
Suite 7
Arkleigh Mansions
200 Brent Street
London
NW4 1BJ

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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainties.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tangible assets

Tangible assets are stated in the balance sheet 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, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold property	1% on cost
Freehold land	Nil

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Evergreen Lodge Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

Fixtures and fittings	15% on reducing balance
Computer equipment	33% on cost

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

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	Straight line over 20 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All debtors are repayable within one year and are hence included at the discounted amount of cash expected to be received.They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged to the profit and loss account on a straight line basis over the term of the lease.

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Evergreen Lodge Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

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Evergreen Lodge Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

Financial instruments

Classification
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. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was as follows:

	2019  No.	2018  No.
Average number of employees	83	94

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Evergreen Lodge Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

4

Exceptional items

	2019  £
Waiver of loan from connected company	980,689

During the year, a loan owed from LVNH Limited, a company under common control, for the amount of £980,689, was waived and consequently the loan balance was written back to the profit and loss account.

5

Intangible assets

	Goodwill  £
Cost
At 1 April 2018 and at 31 March 2019	215,001
Amortisation
At 1 April 2018	166,624
Amortisation charge	10,750
At 31 March 2019	177,374
Carrying amount
At 31 March 2019	37,627
At 31 March 2018	48,377

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Evergreen Lodge Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

6

Tangible assets

	Freehold land and buildings £	Furniture, fittings and equipment  £	Total £
Cost
At 1 April 2018 and at 31 March 2019	644,550	156,645	801,195
Depreciation
At 1 April 2018	71,722	156,513	228,235
Charge for the year	6,446	20	6,466
At 31 March 2019	78,168	156,533	234,701
Carrying amount
At 31 March 2019	566,382	112	566,494
At 31 March 2018	572,828	132	572,960

Land and buildings include land not subject to depreciation of £128,910 (2018 - £128,910)

7

Debtors

	2019  £	2018  £
Trade debtors	257,179	226,860
Other debtors	61,678	49,192
Prepayments	7,992	7,651
Corporation tax asset	9,159	-
Amounts owed by group and connected undertakings	777,188	1,153,875
	1,113,196	1,437,578
Less non-current portion	(777,188)	(1,153,875)
Total current trade and other debtors	336,008	283,703

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Evergreen Lodge Limited

Notes to the Financial Statements for the Year Ended 31 March 2019

8

Creditors

	2019  £	2018  £
Due within one year
Trade creditors	503,078	534,935
Social security and other taxes	22,175	22,817
Other creditors	2,608	4,944
Accrued expenses	212,952	194,051
Corporation tax liability	-	55,674
	740,813	812,421

9

Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary A shares of £1 each	9	9	9	9
Ordinary B shares of £1 each	1	1	1	1
	10	10	10	10

10

Dividends

	2019  £	2018  £
Dividends paid	400,000	-

11

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £169,682 (2018 - £166,573).

12

Contingent liabilities

The company is bound by an intra-group cross guarantee in respect of bank debt with its parent undertaking, We All Care Limited. The amount guaranteed is £3,675,000 (2018 - £3,885,000).

13

Parent and ultimate parent undertaking

The company's immediate parent is We All Care Limited, incorporated in England and Wales.

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