Caradog Hotels Limited Filleted accounts for Companies House (small and micro)

CARADOG HOTELS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 04397063

Caradog Hotels Limited

Filleted Unaudited Financial Statements

30 June 2019

Caradog Hotels Limited

Financial Statements

Period from 1 January 2018 to 30 June 2019

CONTENTS	PAGE

Officers and Professional Advisers	1

Statement of Financial Position	2

Notes to the Financial Statements	4

Caradog Hotels Limited

Officers and Professional Advisers

The board of directors	Mr A Griffiths
	Mr W Griffiths

Company secretary	Mrs P E Griffiths

Registered office	15 Cross Street
	Abergavenny
	Gwent
	NP7 5EN

Accountants	James & Uzzell Ltd
	Chartered Certified Accountants
	Axis 15, Axis Court
	Mallard Way
	Riverside Business Park
	Swansea
	SA7 0AJ

Caradog Hotels Limited

Statement of Financial Position

30 June 2019

	30 Jun 19	31 Dec 17
		(restated)
Note	£	£

FIXED ASSETS

Tangible assets	5	3,376,300	3,512,797

CURRENT ASSETS

Stocks	6	68,814	63,682
Debtors	7	1,320,498	978,035
Cash at bank and in hand		334,174	459,107
		------------	------------
		1,723,486	1,500,824

CREDITORS: amounts falling due within one year	8	1,610,887	1,480,774
		------------	------------
NET CURRENT ASSETS		112,599	20,050
		------------	------------
TOTAL ASSETS LESS CURRENT LIABILITIES		3,488,899	3,532,847

CREDITORS: amounts falling due after more than one year	9	219,791	223,048

PROVISIONS

Taxation including deferred tax	30,433	20,417
	------------	------------
NET ASSETS	3,238,675	3,289,382
	------------	------------

CAPITAL AND RESERVES

Called up share capital	11	310,009	310,009
Profit and loss account		2,928,666	2,979,373
		------------	------------
SHAREHOLDERS FUNDS		3,238,675	3,289,382
		------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

For the period ending 30 June 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 financial statements for the period in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Caradog Hotels Limited

Statement of Financial Position (continued)

30 June 2019

These financial statements were approved by the board of directors and authorised for issue on 31 March 2020 , and are signed on behalf of the board by:

Mr W Griffiths

Director

Company registration number: 04397063

Caradog Hotels Limited

Notes to the Financial Statements

Period from 1 January 2018 to 30 June 2019

1. GENERAL INFORMATION

Caradog Hotels Limited is a private company limited by shares incorporated in England & Wales, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are that of a hotel and restaurant services.

2. STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. The reporting period of these financial statements is 18 months and its comparative period is 12 months. These financial statements only include the results of the individual entity made up to 30 June 2019. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The company meets its day-to-day working capital requirements through its bank facilities. The company's forecasts and projections, taking into account reasonably possible changes in trading performance, showing that the company should be able to operate within the level of its current facilities. Therefore the company continues to adopt the going concern basis in preparing its financial statements. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Investment properties

Investment properties for which fair value can be measured reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair value recognised in profit or loss.

The methods and significant assumptions used to ascertain the fair value and fair value movement included in the profit/loss for the year are recorded in Note 10.

Debtors and creditors receivable

Debtors and creditors with no stated interest rate and receivable or payable within one year recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Critical accounting judgements and estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical conditions of the assets. ii) Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. iii) Stock provision The company sells food and beverage. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. i) Sale of goods Turnover is recognised on the hotels primary operations when rooms are occupied and when food and beverages are sold. ii)Interest receivable Interest income is recognised using the effective interest rate method. iii)Other revenue sources When a voucher is purchased from the company, the figures are held in the balance sheet until the voucher is used. Revenue is recognised when the voucher has been redeemed. When a deposit is placed in relation to a function, the deposits held are kept in the balance sheet until the date of the function. Revenue is recognised on the date of the function. iv)Rental income Income from rentals is recognised in accordance with the terms of the relevant lease.

Exceptional items

Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Operating leases

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	2% straight line
Plant and machinery	-	15% straight line
Fixtures and fittings	-	10% straight line
Motor vehicles	-	20% straight line

Property improvements - 4% straight line Assets in course - 0% until brought into use of construction

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Leases

Assets held under leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

4. PARTICULARS OF EMPLOYEES

The average number of persons employed by the company during the period amounted to 6 (2017: 107 ).

5. TANGIBLE ASSETS

	Land and buildings	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 January 2018 (as restated)	3,414,519	664,605	1,112,162	122,540	5,313,826
Additions	–	57,480	51,527	17,250	126,257
	------------	---------	------------	---------	------------
At 30 June 2019	3,414,519	722,085	1,163,689	139,790	5,440,083
	------------	---------	------------	---------	------------
Depreciation
At 1 January 2018	487,465	459,508	731,516	122,540	1,801,029
Charge for the period	72,353	81,047	105,666	3,688	262,754
	------------	---------	------------	---------	------------
At 30 June 2019	559,818	540,555	837,182	126,228	2,063,783
	------------	---------	------------	---------	------------
Carrying amount
At 30 June 2019	2,854,701	181,530	326,507	13,562	3,376,300
	------------	---------	------------	---------	------------
At 31 December 2017	2,927,054	205,097	380,646	–	3,512,797
	------------	---------	------------	---------	------------

Borrowing costs totalling £398,821 (2017: £398,821) have been included in the cost of fixed assets. Net book value of land & buildings comprised:

	2019	2017
	£	£
Freehold investment properties	755,057	755,057
Freehold land & buildings	1,697,170	1,533,480
Property Improvements	–	390,847
Assets in the course of construction	402,473	247,670
	------------	------------
	2,854,700	2,927,054
	------------	------------

Cost of valuation of land and buildings comprises:

		2019
		£
	Cost	4,114,519
	Valuation	(700,000)
		------------
		3,414,519
		------------

The comparable amounts determined according to the historical cost convention are as follows:

	2019	2017
	£	£
Cost	4,114,519	4,114,519
Valuation	(700,000)	(700,000)
Accumulated Depreciation	(559,819)	(487,465)
	------------	------------
Net Book Value at year end	2,854,700	2,927,054
	------------	------------

Freehold investment properties have been valued using the fair value model under FRS102. The valuation during the year was undertaken by the director, Mr Griffiths, although he is not professionally qualified, he has extensive knowledge of properties in the relevant areas and has built up a property portfolio over many years. The methods and significant assumptions used to ascertain the fair value of £755,057 are as follows: There has not been significant movement in the property values, within these locations, since the latest professional valuations. Expenditure has been incurred to maintain the properties at their current standard. The properties are still in use and no physical damage is evident.

6. STOCKS

	30 Jun 19	31 Dec 17
		(restated)
	£	£
Goods for resale	68,814	63,682
	--------	--------

7. DEBTORS

	30 Jun 19	31 Dec 17
		(restated)
	£	£
Trade debtors	86,909	79,879
Other debtors	1,233,589	898,156
	------------	---------
	1,320,498	978,035
	------------	---------

8. CREDITORS: amounts falling due within one year

	30 Jun 19	31 Dec 17
		(restated)
	£	£
Bank loans and overdrafts	12,360	23,748
Trade creditors	543,697	285,990
Corporation tax	–	10,569
Social security and other taxes	54,220	200,969
Other creditors	1,000,610	959,498
	------------	------------
	1,610,887	1,480,774
	------------	------------

The total amount of secured liabilities for creditors falling due within one year is £17,006 (2017: £23,748). Bank loans and overdrafts are secured by a legal charge over the property to which it relates. Hire purchase contracts are secured over the asset to which they relate

9. CREDITORS: amounts falling due after more than one year

	30 Jun 19	31 Dec 17
		(restated)
	£	£
Bank loans and overdrafts	216,132	223,048
Other creditors	3,659	–
	---------	---------
	219,791	223,048
	---------	---------

The total amount of secured liabilities for creditors falling due after more than one year is £219,790 (2017: £223,048). Bank loans and overdrafts are secured by a legal charge over the property to which it relates. Hire purchase contracts are secured over the asset to which they relate

10. PRIOR PERIOD ERRORS

The financial statements include a prior period adjustment to account for the following: a)Impairment review to an asset included in the net book value of land and buildings.

11. CALLED UP SHARE CAPITAL

Issued, called up and fully paid

	30 Jun 19		31 Dec 17
			(restated)
	No.	£	No.	£
Ordinary shares of £ 1 each	310,009	310,009.00	310,009	310,009.00
	---------	-------------	---------	-------------

12. RELATED PARTY TRANSACTIONS

During the year the company entered into the following transactions: Key management personnel

	2019	2017
	£	£
Balance due (to) key management personnel	(44,428)	(93,329)

Other related parties

	2019	2017
	£	£
Balance due (to) other related parties	(205,931)	(204,460)
Balance due from other related parties	1,104,705	835,993
Trade Debtor balances with other related parties	36,949	32,852
Trade Creditor balances with other related parties	183,895	5,987

No interest has been charged on these balances.

13. PARENT COMPANY

The ultimate parent company is Treffgarne Properties Limited, a company incorporated in England & Wales. Its registered office is 21 Nevill Street, Abergavenny, Monmouthshire, NP7 5AA.

The immediate parent company is Mainunit Limited, a company incorporated in England & Wales. Its registered office is the same as the ultimate parent company.