Cheshire Hospitality Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02680729 (England and Wales)

CHESHIRE HOSPITALITY LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2020

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

M A Wormald

J L Wormald

SECRETARY:

M A Wormald

REGISTERED OFFICE:

PO Box M33 2BJ

Lennox Lea Studios & Apartments

Charlton Drive

Sale

Manchester

M33 2BJ

REGISTERED NUMBER:

02680729 (England and Wales)

ACCOUNTANTS:

DTE Business Advisers Limited

Chartered Accountants

The Exchange

5 Bank Street

Bury

BL9 0DN

FIXED ASSETS

Property, plant and equipment

4

556,447

579,987

CURRENT ASSETS

Inventories

625

625

Debtors

5

3,655

2,212

Cash at bank

6,643

13,905

10,923

16,742

CREDITORS

Amounts falling due within one year

6

(154,452

)

(195,267

)

NET CURRENT LIABILITIES

(143,529

)

(178,525

)

TOTAL ASSETS LESS CURRENT LIABILITIES

412,918

401,462

CREDITORS

Amounts falling due after more than one year

7

(141,594

)

(147,765

)

PROVISIONS FOR LIABILITIES

(11,544

)

(12,946

)

NET ASSETS

259,780

240,751

CAPITAL AND RESERVES

Called up share capital

311,494

311,494

Retained earnings

(51,714

)

(70,743

)

SHAREHOLDERS' FUNDS

259,780

240,751

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 28 February 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 28 February 2020 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 October 2020 and were signed on its behalf by:

M A Wormald - Director

1.	STATUTORY INFORMATION

Cheshire Hospitality Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 02680729. The registered office is PO Box M33 2BJ, Lennox Lea Studios & Apartments, Charlton Drive, Sale, Manchester, M33 2BJ.

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.

Post year end saw the outbreak of Covid-19 in China which has become a global pandemic. The directors have considered the impact of the pandemic on the company and recognise that the future cannot be predicted with any certainty.

To date, however, the company has remained operational with policies in place to ensure all site workers are working safely and in accordance with government guidelines. Should demand for the company's services fall, the directors would introduce appropriate cost control measures and would look to obtain government backed funding support as necessary.

As a result of the above, the directors are satisfied that the company is a going concern and that the financial statements are correctly prepared on this basis.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered key judgement in calculating an appropriate depreciation charge.

Revenue

Revenue represents amounts receivable for goods and services net of VAT and trade discounts. Revenue is recognised as the company provides its services to the customer.

Property, plant and equipment

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Land - not provided

Buildings - 2% straight line

Plant and machinery etc - 25% on reducing balance

The residual values, estimated useful lives and depreciation method of property, plant and equipment are

reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Inventories

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is derived from actual purchase price.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate.

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 accounts receivable and payable, loans from banks and other third parties and loans to related parties.

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 the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2019 - 12 ) .

4.	PROPERTY, PLANT AND EQUIPMENT

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST

At 1 March 2019

and 28 February 2020

628,738

379,551

1,008,289

DEPRECIATION

At 1 March 2019

134,570

293,732

428,302

Charge for year

-

23,540

23,540

At 28 February 2020

134,570

317,272

451,842

NET BOOK VALUE

At 28 February 2020

494,168

62,279

556,447

At 28 February 2019

494,168

85,819

579,987

Included in cost of freehold property is freehold land of £98,834 (2018 - £98,834) which is not depreciated.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

2,181

486

Other debtors

1,474

1,726

3,655

2,212

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

6,175

5,930

Trade creditors

775

2,136

Taxation and social security

15,717

6,415

Other creditors

131,785

180,786

154,452

195,267

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

141,594

147,765

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

113,974

121,678

8.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loans

147,769

153,695

The bank loans are secured by a fixed and floating charge over the company's assets.

9.	POST BALANCE SHEET EVENTS

Post year end saw the outbreak of Covid-19 in China which has become a global pandemic. The directors have considered the impact of the pandemic on the company and recognise that the future cannot be predicted with any certainty.

To date, however, the company has remained operational with policies in place to ensure all site workers are working safely and in accordance with government guidelines. Should demand for the company's services fall, the directors would introduce appropriate cost control measures and would look to obtain government backed funding support as necessary.