LETHENDY_ESTATES_LIMITED - Accounts
LETHENDY_ESTATES_LIMITED - Accounts
The directors present the strategic report for the period ended 31 December 2018.
The group started trading in the hospitality sector during the period ending 31 December 2018 following the acquisition of four hotels in England. The turnover was £5,050,192. This was in line with the expectations of the directors.
The directors consider there to be an appropriate structure in place to plan for and mitigate risks.
Competitive risk: The group operates in a competitive market.The risks associated with this are mitigated by ensuring the group offers a high quality service across all areas of the business in line with the expectations of the widely recognised brand name and by targeting business customers as well as the tourism sector.
Credit risk: The key credit risk is in relation to debtors. The directors consider there be sufficient controls in place to mitigate this risk, with a regular review of outstanding balances.
The group's financial instruments comprise cash at bank, borrowings, trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations and the main risk arising from them is interest rate fluctuations.
The management of the group has been challenged by COVID-19 pandemic. Business contingency plans have been implemented and will continue to be adjusted in response to the global situation. As of 24 March 2020 all group hotels followed government guidelines and closed for business. The length of time this enforced closure will last is currently unknown.
It is the opinion of the directors that this is a temporary loss of trade and that the group, through a carefully planned strategy, will be able to continue to operate as a going concern.
The strategy involves the following:
considering and making use of all the relevant government support the group is eligible for including the Coronavirus Job Retention Scheme, the Coronavirus Business Interruption Loan Scheme and the deferring of VAT and other tax payments,
applying for and receiving the required ongoing support of its external lenders,
receiving the ongoing support of the ultimate controlling entities.
The directors acknowledge that at the date of approval of the financial statements the group has not
agreed new or amended bank facilities and has not received unconditional offer of support from other
group entities. As these measures are not in place a material uncertainty exists that casts doubt over the group's ability to continue as a going concern and therefore to realise its assets and discharge its liabilities as they fall due.
Unquantifiable risks that could affect the group’s management activities mentioned above include the duration and scope of the COVID-19 pandemic and impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity; the pace of recovery when the COVID-19 pandemic subsides.
Brexit: We have considered the risks and potential impact of the United Kingdom's withdrawal from the European Union and have concluded that there are no material uncertainties arising that would have a significant effect on the group and company in respect of this.
Financial key performance indicators include the monitoring of the management of profitability and working capital.
The main aim for the year ahead is to continue a similar level of corporate business and to keep expanding in the tourism sector. However due to the current circumstances mentioned in the principal risks and uncertainties section of this report this will be a challenge.
On behalf of the board
The directors present their annual report and financial statements for the period ended 31 December 2018.
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
The results for the period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Campbell Dallas Audit Services were appointed as auditor to the group and is deemed to be reappointed under section 487(2) of the Companies Act 2006.
select suitable accounting policies and then apply them consistently; make judgements and accounting estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2018 and of the group's loss for the period 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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.
Material uncertainty related to going concern
We draw attention to note 1 in the financial statements concerning the group’s ability to continue as a going concern. As a result of a downturn in operations following the outbreak of the COVID-19 pandemic in the UK, the group will require to renegotiate the terms of its bank loan facility or receive additional external funding, in order to meet projected cash shortfalls. Neither measure has been achieved at the date of approval of the financial statements, indicating that a material uncertainty exists that casts doubt over the group’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
Key audit matters
Except for the matter described in the material uncertainty related to going concern section, we have determined that there are no other key audit matters to be communicated in our report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 strategic report and the directors' report.
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.
As explained more fully in the directors' responsibilities statement, 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 is 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.
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 an auditor’s report 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: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 an auditor's report 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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the period was £697,741.
Lethendy Estates Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is 5 Carden Place, Aberdeen, Scotland, AB10 1UT.
The group consists of Lethendy Estates Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated financial statements incorporate those of Lethendy Estates Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 December 2018. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Lethendy Cheltenham Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Lethendy Cheltenham Limited for the period from its acquisition on 18 September 2018.The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.
The group profit and loss account and statement of cash flows also include the results and cash flows of Lethendy Bolton Limited, Lethendy Elstree Limited and Lethendy Stoke-On-Trent Limited for the period from their incorporation on 9 May 2018.
As is the case for many businesses within the hospitality sector in the United Kingdom, the group has suffered a significant interruption to trade as a result of the COVID-19 pandemic. As of 24 March 2020 the hotels followed government guidelines and closed for business. The length of time this enforced closure will last is currently unknown.
It is the opinion of the directors that this is a temporary loss of trade and that the group, through a carefully planned strategy, will be able to continue to operate as a going concern.
The strategy involves the following:
considering and making use of all the relevant government support the group is eligible for including the Coronavirus Job Retention Scheme and the Coronavirus Business Interruption Loan Scheme
applying for and utilising available agreements for the deferral of VAT and other indirect tax payments
working with its external lenders to ensure their continued support and to secure temporary covenant waivers if required
receiving the ongoing support of the ultimate controlling entities
The current and future financial position of the group, its cash flows and liquidity position have been reviewed by the directors. Based on the revised cash flow projections, we anticipate that the group will continue to have adequate cash reserves to meet its liabilities as they fall due.
While it is not possible to reliably estimate the length or severity of the outbreak, at the date of signing the group’s financial position remains stable, and it continues to operate within Government guidelines. The group acknowledges this could change suddenly depending on how the COVID-19 pandemic evolves in the UK and whether there are further long terms interruptions to business.
The directors acknowledge that at the date of approval of the financial statements the group has not formally agreed new or amended bank facilities, including long term amendments to covenants and that the support from other group entities is not by way of a formal binding facility. The absence of these measures and the continued uncertainty following the COVID-19 pandemic create a material uncertainty that casts doubt over the group’s ability to continue as a going concern and therefore to realise its assets and discharge its liabilities as they fall due.
Nevertheless, having taken the steps detailed above the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
These financial statements are presented for a period shorter than one year. This is the first period of accounts as the company incorporated on 21 February 2018.
Turnover represents income from food and beverage sales, hotel services, room hire and related services, excluding value added tax. Turnover is stated at the fair value of the consideration receivable, net of value added tax, rebates and discounts.
Revenue from services provided is recognised when the company has performed its obligations and in exchange obtained the right to consideration.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the group's net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the group’s net investment outstanding in respect of leases.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
Finance costs
Interest payable and similar charges include interest payable and finance leases recognised in profit or loss using the effective interest method.
Related party transactions
The group discloses transactions with related parties which are not wholly owned within the same group. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the group financial statements.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Exchange differences recognised in profit or loss during the period, except for those arising on financial instruments measured at fair value through profit or loss, amounted to £352.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
The actual charge for the period can be reconciled to the expected credit for the period based on the profit or loss and the standard rate of tax as follows:
Freehold land and building additions in the period to 31 December 2018 reflect the hotels acquired by the trading subsidiaries. The cost of the hotels acquired reflect independent valuations performed around the date of acquisition.
The addition by business combination reflects the fair value of the land and buildings acquired as part of the acquisition of Lethendy Cheltenham Limited. The fair value of the property in this entity was established with reference to an external valuation at the acquisition date.
Details of the company's subsidiaries at 31 December 2018 are as follows:
Registered office addresses (all UK unless otherwise indicated):
These subsidiaries are all included within the consolidation.
As permitted by the reduced disclosure framework within FRS 102, the company has taken advantage of the exemption from disclosing the carrying amount of certain classes of financial instruments, denoted by 'n/a' above.
The interest rate on the amount contained within bank loans and overdrafts is Base Rate + 2.78%. This is secured by fixed charges over land and buildings on the full amount of the loan. This charge also contains a negative pledge. A charge on deposit of £645,351 is held by the lender as security. This amount is due to be repaid by September 2023.
The amount contained within other borrowings is due to a related party, not secured, is subject to 10% interest per annum and the full amount including interest accrued is payable on 11 May 2021.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
On 18 September 2018 the group acquired 100 percent of the issued capital of Lethendy Cheltenham Limited.
Goodwill has an estimated useful life of ten years and will be amortised over this period.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
In August 2019, the company had restrictions placed over the sale of the land which the group's primary
asset sits on and relates to litigation against the wider group. This restriction requires the group to seek
third party consent to any sale of the land and buildings. The directors do not believe the restriction should
be applied and have appealed against the restriction.
As noted in the strategic report and in the accounting policies the group is facing significant issues in
respect of the COVID-19 pandemic. This is an ongoing situation and the group is adopting a strategy to
manage the everchanging situation as effectively as possible.
The directors are satisfied that the above subsequent events do not affect the group's ability to continue as a going concern and this basis is appropriate for the preparation of the accounts.
Tylsoca Limited, a company under the control of the ultimate controlling party, The MF Trust, is owed £20,293,685 by the group and company which is included within other borrowings due after one year. This is subject to 10% interest and repayable in full on 8 May 2021. There was interest of £630,989 paid by the group and company during the period in relation to this.
The group and company are also due Tylsoca Limited £127,127 which is included within amounts due to group undertakings in less than one year.
The company had legal and professional fees of £137,300 from Michel and Taylor (London) Limited, a company which has directors in common with the subsidiaries of the group. The group in total had management fees and legal and professional fees totalling £418,301. At the period end there was a total balance for Michel and Taylor (London) Limited of £183,996 included within trade creditors and accruals.
Consultancy fees of £27,314 were incurred during the period in relation to Sia Paganel, an entity registered in Latvia, under the control of a director of the company. There was no balance outstanding at the period end.
The parent company is Milyan Investments Limited. This is the largest group of undertakings for which group accounts are drawn up, these can be obtained from the registered address, Stasinou, 8, Photiades Business Centre, Flat/Office 402, 1060, Nicosia, Cyprus.
The ultimate controlling party of Lethendy Estates Limited is the trustees of the MF Trust, a trust based in the Cayman Islands.