Langrish House Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03494266 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

FOR

LANGRISH HOUSE LIMITED

PREVIOUSLY KNOWN AS

LANGRISH HOUSE HOTEL LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

10

DIRECTORS:

Mr N E C Talbot-Ponsonby

Mrs R H Talbot-Ponsonby

SECRETARY:

Mrs R H Talbot-Ponsonby

REGISTERED OFFICE:

Langrish House

Langrish

Petersfield

Hampshire

GU32 1RN

REGISTERED NUMBER:

03494266 (England and Wales)

ACCOUNTANTS:

Cox Costello & Horne

Chartered Accountants and Tax Advisors

4th & 5th Floor

14-15 Lower Grosvenor Place

London

SW1W 0EX

FIXED ASSETS

Tangible assets

4

2,399,462

2,423,967

Investment property

5

500,000

500,000

2,899,462

2,923,967

CURRENT ASSETS

Stocks

9,512

13,214

Debtors

6

278,123

247,715

Cash at bank and in hand

2,755

17,902

290,390

278,831

CREDITORS

Amounts falling due within one year

7

204,400

85,617

NET CURRENT ASSETS

85,990

193,214

TOTAL ASSETS LESS CURRENT LIABILITIES

2,985,452

3,117,181

CREDITORS

Amounts falling due after more than one year

8

(1,342,844

)

(1,372,034

)

PROVISIONS FOR LIABILITIES

10

(173,726

)

(178,007

)

NET ASSETS

1,468,882

1,567,140

CAPITAL AND RESERVES

Called up share capital

250,000

250,000

Revaluation reserve

11

1,253,470

1,261,070

Fair value reserve

11

40,000

40,000

Retained earnings

11

(74,588

)

16,070

SHAREHOLDERS' FUNDS

1,468,882

1,567,140

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors on 30 December 2019 and were signed on its behalf by:

Mr N E C Talbot-Ponsonby - Director

1.	STATUTORY INFORMATION

Langrish 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.

Going concern

The company meets its day-to-day working capital requirements through its bank and loan facilities. The

company's forecasts and projections, taking account of reasonably possible changes in trading performance,

show that the company should be able to operate within the level of its current facilities. After making enquiries,

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.

Turnover

Turnover comprises revenue recognised by the company in respect of sale of goods and provision of services

supplied. Turnover is measured as the fair value of the consideration received or receivable, excluding

discounts, rebates and other sales taxes, such as value-added tax. Revenue from room sales and other guest

services is recognised when rooms are occupied and as services are provided.

The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in

accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets

Tangible fixed assets are stated at historical cost, with the exception of freehold land and buildings which are

revalued, less accumulated depreciation and any accumulated impairment losses. Historical cost includes

expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be

capable of operating in the manner intended by management. The freehold land and buildings have been

revalued as a whole and hence the building element is indistinguishable from the land element. The building

element of this valuation is determined by the directors.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful

lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

-

Freehold land

- not provided

-

Freehold buildings

- upto 50 years

-

Freehold improvements

- upto 50 years

-

Plant and machinery

- 25% on cost

-

Fixtures and fittings

- 25% on cost

-

Computer equipment

- 25% on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if

appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are

recognised in profit or loss.

Investment property

Investment property consists of commercial property held for long-term rental yields or for capital appreciation or

both, and not held for the social benefit or for use in the business. Investment property is measured at cost,

including related transaction costs, on initial recognition and subsequently at fair value as at the year end, with

changes in fair value recognised in profit and loss. Subsequent expenditure is capitalised to the asset's carrying

value only when it is probable that future economic benefits associated with the expenditure will flow to the

company. All other repairs and maintenance costs are expensed when incurred. Fair value is determined by

either independent professional third party valuers or company officers, such as the directors. Depreciation is not

provided in respect of the investment properties. Fair value of investment property reflects, among other things,

rental income from current leases and other assumptions market participants would make when pricing the

property under current market conditions.

Stocks

Stocks are stated at the lower of cost and net realisable value. 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 inventories to their location and condition. At

each reporting date, inventories are assessed for impairment. If inventory is impaired, the carrying amount is

reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in

profit and loss.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial

assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to

related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period

for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is

recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an

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.

a) Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost

using the effective interest method, less any impairment.

b) Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related

parties, 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. Such instruments are subsequently carried at amortised cost using the effective interest method, less

any impairment.

c) Cash at bank and in hand

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and

other short-term highly liquid investments that mature in no more than three months from the date of acquisition

and that are readily convertible to known amounts of cash with insignificant risk of change in value.

d) Interest income

Interest income is recognised in profit or loss using the effective interest method.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change attributable to an item of income and expense recognised

as other comprehensive income or to an item recognised directly in equity is also recognised in other

comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by

the balance sheet date, except that:

-

the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

-

any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively

enacted by the balance sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling

at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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.

Pension costs

The company operates a defined contribution pension scheme. The assets of the scheme are held separately

from those of the company in an independently administered fund. The pension costs represent contributions

payable under the scheme by the company. The company has no liability under the scheme other than for the

payment of those contributions.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2018 - 20 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 April 2018

2,365,000

313,725

2,678,725

Additions

-

17,029

17,029

At 31 March 2019

2,365,000

330,754

2,695,754

DEPRECIATION

At 1 April 2018

14,600

240,158

254,758

Charge for year

7,300

34,234

41,534

At 31 March 2019

21,900

274,392

296,292

NET BOOK VALUE

At 31 March 2019

2,343,100

56,362

2,399,462

At 31 March 2018

2,350,400

73,567

2,423,967

Included in cost or valuation of land and buildings is freehold land of £ 2,000,000 (2018 - £ 2,000,000 ) which is

not depreciated.

Cost or valuation at 31 March 2019 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 1999

277,029

-

277,029

Valuation in 2010

1,217,808

-

1,217,808

Valuation in 2016

3,303

-

3,303

Cost

866,860

330,754

1,197,614

2,365,000

330,754

2,695,754

If freehold land and buildings had not been revalued they would have been included at the following historical

cost:

31.3.19

31.3.18

£

£

Cost

866,860

866,860

Aggregate depreciation

153,300

146,000

Value of land in freehold land and buildings

501,860

501,860

Freehold land and buildings were valued on an open market value basis on 31 March 2019 by the directors .

At the reporting date, the directors consider the carrying value of the freehold property to be line open with the

market expectation.

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2018

and 31 March 2019

500,000

NET BOOK VALUE

At 31 March 2019

500,000

At 31 March 2018

500,000

Fair value at 31 March 2019 is represented by:

£

Valuation in 2010

40,000

Cost

460,000

500,000

If investment property had not been revalued it would have been included at the following historical cost:

31.3.19

31.3.18

£

£

Cost

460,000

460,000

Aggregate depreciation

(110,400

)

(101,200

)

Investment property was valued on an open market basis on 31 March 2019 by the directors .

At the reporting date, the directors consider the carrying value of the investment property to be line open with the

market expectation.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.3.18

£

£

Trade debtors

7,606

4,000

Amounts receivable in respect of finance leases

355

1,063

Other debtors

270,162

242,652

278,123

247,715

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.19

31.3.18

£

£

Finance leases

8,481

7,773

Trade creditors

43,037

2,000

Taxation and social security

9,412

22,981

Other creditors

143,470

52,863

204,400

85,617

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.19

31.3.18

£

£

Bank loan

1,300,000

1,300,000

Finance leases

2,844

12,034

Other creditors

40,000

60,000

1,342,844

1,372,034

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loan more 5 years

1,300,000

1,300,000

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.19

31.3.18

£

£

Finance leases

11,325

19,807

Bank loan

1,300,000

1,300,000

Other loan

80,000

80,000

1,391,325

1,399,807

Finance leases are secured over the assets concerned.

The bank loan is secured by way of a registered legal charge over the freehold property and all other assets of

the company.

The other loan is secured over the assets concerned.

10.	PROVISIONS FOR LIABILITIES

31.3.19

31.3.18

£

£

Deferred tax

173,726

178,007

Deferred

tax

£

Balance at 1 April 2018

178,007

Freehold property revaluation

(7,600

)

Allowances over depreciation

3,319

Balance at 31 March 2019

173,726

11.

RESERVES

Fair

Retained

Revaluation

value

earnings

reserve

reserve

Totals

£

£

£

£

At 1 April 2018

16,070

1,261,070

40,000

1,317,140

Deficit for the year

(90,658

)

(90,658

)

Deferred tax on revaluation

-

(7,600

)

-

(7,600

)

At 31 March 2019

(74,588

)

1,253,470

40,000

1,218,882

The revaluation reserve comprises the movement on the revaluation of freehold property and deferred tax

recognised thereon.

The fair value reserve comprises the movement on the fair value of investment property and deferred tax

recognised thereon.

12.	ULTIMATE CONTROLLING PARTY

At the reporting date, in the opinion of the directors, there is no ultimate single individual controlling party. There

has been no change between the reporting date and date of approval of the financial statements.

The following reproduces the text of the report prepared for the directors in respect of the company's annual

unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file

a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and

the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Langrish House Limited for the year ended 31 March 2019 which comprise the Profit and loss

account, Balance Sheet and the related notes 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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Langrish House Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Langrish House Limited and state those matters that we have agreed to state to the Board of Directors of Langrish House Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Langrish House Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Langrish House 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 loss of Langrish House Limited. You consider that Langrish House 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 Langrish House 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.

Cox Costello & Horne

Chartered Accountants and Tax Advisors

4th & 5th Floor

14-15 Lower Grosvenor Place

London

SW1W 0EX

30 December 2019