|
|
Turnover |
|
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
|
|
Tangible fixed assets |
|
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
|
|
Leasehold improvements |
5% straight line |
|
Plant and machinery |
20% straight line |
|
Computer |
33.33% straight line |
|
Equipment, fixtures and fittings |
15% straight line |
|
Motor vehicles |
25% straight line |
|
|
Investments |
|
Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account. |
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
|
| 2 |
Employees |
2019 |
|
2018 |
| Number |
Number |
|
|
Average number of persons employed by the company |
32 |
|
31 |
|
|
|
|
|
|
|
|
|
|
|
|
| 3 |
Leasehold improvements |
£ |
|
|
|
Cost |
|
At 1 January 2019 |
127,840 |
|
At 31 December 2019 |
127,840 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2019 |
26,007 |
|
Provided during the year |
6,392 |
|
At 31 December 2019 |
32,399 |
|
|
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 December 2019 |
95,441 |
|
At 31 December 2018 |
101,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 4 |
Tangible fixed assets |
|
|
Computer |
|
Motor vehicles |
|
Plant and machinery etc |
|
Equipment, fixtures and fittings |
|
Total |
| £ |
£ |
£ |
£ |
£ |
|
Cost |
|
At 1 January 2019 |
7,492 |
|
10,850 |
|
48,150 |
|
63,389 |
|
129,881 |
|
Additions |
1,065 |
|
- |
|
5,543 |
|
2,534 |
|
9,142 |
|
At 31 December 2019 |
8,557 |
|
10,850 |
|
53,693 |
|
65,923 |
|
139,023 |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 January 2019 |
7,085 |
|
2,713 |
|
33,609 |
|
37,301 |
|
80,708 |
|
Charge for the year |
558 |
|
2,712 |
|
6,534 |
|
9,889 |
|
19,693 |
|
At 31 December 2019 |
7,643 |
|
5,425 |
|
40,143 |
|
47,190 |
|
100,401 |
|
|
|
|
|
|
|
|
|
|
|
|
Net book value |
|
At 31 December 2019 |
914 |
|
5,425 |
|
13,550 |
|
18,733 |
|
38,622 |
|
At 31 December 2018 |
407 |
|
8,137 |
|
14,541 |
|
26,088 |
|
49,173 |
|
|
| 5 |
Debtors |
2019 |
|
2018 |
| £ |
£ |
|
|
Trade debtors |
- |
|
2,629 |
|
Overdrawn Directors loan |
|
|
|
|
|
|
3,446 |
|
- |
|
Other debtors |
10,241 |
|
15,780 |
|
|
|
|
|
|
|
|
13,687 |
|
18,409 |
|
|
|
|
|
|
|
|
|
|
|
|
| 6 |
Creditors: amounts falling due within one year |
2019 |
|
2018 |
| £ |
£ |
|
|
Bank loans and overdrafts |
- |
|
26,000 |
|
Trade creditors |
44,283 |
|
51,524 |
|
Corporation tax |
- |
|
- |
|
Taxation and social security costs |
54,744 |
|
56,269 |
|
Other creditors |
23,383 |
|
37,974 |
|
|
|
|
|
|
|
|
122,410 |
|
171,767 |
|
|
|
|
|
|
|
|
|
|
|
|
| 7 |
Creditors: amounts falling due after one year |
2019 |
|
2018 |
| £ |
£ |
|
|
Bank loans |
200,000 |
|
200,000 |
|
|
|
|
|
|
|
|
|
|
|
|
The first loan for £100,000.00 is repayable on the 15th September 2021 with no early payment penalties. The Loan interest rate is 4% per annum payable monthly in arrears. |
|
The second loan for £100,000.00 is repayable on the 23rd February 2022 with no early payment penalties. The Loan interest rate is 4% per annum payable monthly in arrears. |
|
The third loan for £26,000.00 was repaid on the 4th June 2019. The Loan interest rate was 4% per annum payable monthly in arrears. |
|
| 8 |
Related party transactions |
|
|
Line Management Executive Pension Scheme |
|
Line Management Executive Pension Scheme is the pension fund for which the members are Nigel Rowe, Gareth Rowe and Ieuan Rowe. |
|
Line Management Executive Pension Scheme holds the freehold of the Dragon Inn. During the period the Dragon Inn (Crickhowell) Limited were charged rental costs totalling £39,500.00 (2018: £26,500.00). The rent payable in the accounts of £37,479.76 (2018: £23,589.76) is after accounting adjustments for the rent free period and the reduced rate period of the lease have been made. As at the 31st December 2019 Line Management Executive Pension Scheme owed back an amount of £5,568.00 (2018: £5,568.00) to the Dragon Inn (Crickhowell) Limited. |
|
|
Vivian Rowe |
|
Vivian Rowe is brother of the Company Director Nigel Rowe. |
|
During the period the Dragon Inn (Crickhowell) Limited borrowed a £NIL (2018: £NIL) loan from Vivian Rowe. |
|
As at the 31st December 2019 £200,000.00 (2018: £226,000.00) was owed back to Vivian Rowe. |
|
|
Line Management Group Ltd |
|
Nigel Rowe and Gareth Rowe are also directors/shareholders of Line Management Group Ltd. |
|
During the period ended 31st December 2019, the Dragon Inn (Crickhowell) Limited borrowed £NIL (2018: £NIL) from Line Management Group Ltd. During the period ended 31st December 2019 Line Management Group Ltd purchased goods and services to the value of £NIL (2018: £1,174.00) from the Dragon Inn (Crickhowell) Limited which were at an arms length market value. £NIL monies were owed as at the 31st December 2019 (2018: £NIL). |
|
|
Leigh Rowe |
|
Leigh Rowe is Spouse of the Company Director Gareth Rowe. |
|
During the period wages and pension costs of £48,952.59 were incurred in relation to Leigh Rowe as an employee (2018: £51,587.47). |
|
|
Rhiannon Rowe |
|
Rhiannon Rowe is the daughter of Company Director Gareth Rowe. |
|
During the period wages and pension costs of £1,603.72 (2018: £1,034.10) were incurred in relation to Rhiannon Rowe as an employee. |
|
|
Owain Rowe |
|
Owain Rowe is the son of Company Director Gareth Rowe. |
|
During the period wages and pension costs of £492.33 were incurred in relation to Owain Rowe as an employee. |
|
|
Crickhowell Literary Festival |
|
The Chairman of Crickhowell Literary Festival is Anne Rowe, Spouse of the Company Director Nigel Rowe. |
|
During the period ending 31st December 2019 Crickhowell Literary Festival purchased goods and services to the value of £1,197.00 from the Dragon Inn (Crickhowell) Limited which were at an arms length market value (2018: £1,390.83). As at the 31st December 2018 Crickhowell Literary Festival owed £NIL to the Dragon Inn (Crickhowell) Limited (2018: £NIL). |
|
| 9 |
Controlling party |
|
|
Mr Nigel Rowe holds 70% of the share capital of the company and Mr Gareth Rowe holds 30% of the share capital of the company. Therefore Mr Nigel Rowe is the company's ultimate controlling party. |
|
| 10 |
Transactions with director |
|
|
During the year Nigel Rowe used a current account with the company to record amounts due to him and amounts drawn by him. As at the 31st December 2019 the account was overdrawn by £3,348.00. The account was repaid in full on the 26th March 2020. The account shows an amount owing back to Nigel Rowe as a director as at 31st December 2018 of £14,026.71. The amount is repayable on demand and does not carry interest.
During the year company director Gareth Rowe used a current account with the company to record amounts due to him and amounts drawn by him. As at 31st December 2019 the account was overdrawn by £97.72 (2018:£104.89). |
|
| 11 |
Other information |
|
|
Dragon Inn (Crickhowell) Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is: |
|
Third Floor |
|
20 Old Bailey |
|
London |
|
EC4M 7AN |
