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

REGISTERED NUMBER: 04440857 (England and Wales)

Unaudited Financial Statements for the Year Ended 30 November 2019

for

Passage House Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

R S T Haywood

T J Haywood

REGISTERED OFFICE:

C/O Prydis

Senate Court

Southernhay Gardens

Exeter

Devon

EX1 1NT

BUSINESS ADDRESS:

Hackney Lane

Kingsteignton

Newton Abbot

Devon

TQ12 3HQ

REGISTERED NUMBER:

04440857 (England and Wales)

ACCOUNTANTS:

Prydis Accounts Limited

Chartered Accountants

Senate Court

Southernhay Gardens

Exeter

Devon

EX1 1NT

FIXED ASSETS

Investment property

4

1,385,228

1,385,228

CURRENT ASSETS

Stocks

27,595

29,509

Debtors

5

809,470

382,498

Cash at bank and in hand

3,000

1,496

840,065

413,503

CREDITORS

Amounts falling due within one year

6

1,092,413

629,288

NET CURRENT LIABILITIES

(252,348

)

(215,785

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,132,880

1,169,443

CREDITORS

Amounts falling due after more than one year

7

971,300

1,000,322

NET ASSETS

161,580

169,121

CAPITAL AND RESERVES

Called up share capital

1,000

1,000

Share premium

1,036,350

1,036,350

Retained earnings

(875,770

)

(868,229

)

SHAREHOLDERS' FUNDS

161,580

169,121

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 November 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 November 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 and authorised for issue on 27 November 2020 and were signed on its behalf by:

R S T Haywood - Director

1.	STATUTORY INFORMATION

Passage 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.

The directors have assessed the impact of the recent outbreak of COVID-19 and the UK lockdown on the businesses ability to continue trading in the foreseeable future. The lockdowns impacted the business as the hotel was only able to accommodate key workers and therefore occupancy levels were significantly reduced. In order to mitigate the loss of income, the directors ensured that costs were controlled. However, the directors are confident that the business will continue being profitable. The accounts have therefore been prepared on the going concern basis.

Turnover

Turnover represents the amount derived from ordinary activities and is recognised when the significant risks and rewards of the goods or services provided have been transferred to the buyer, the amount of revenue can be measured reliably and it is probable that the economic benefits associated with the transaction will flow to the company, turnover is stated after trade discounts, sales taxes and net of value added tax.

Rental income

Revenue from rental income is recognised in line with the lease agreement.

Investment property

Investment property is shown at the most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to the profit and loss account.

Stocks

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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 profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 73 (2018 - 2 ) .

4.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 December 2018

and 30 November 2019

1,385,228

NET BOOK VALUE

At 30 November 2019

1,385,228

At 30 November 2018

1,385,228

Valuation was undertaken by Chartered Surveyors Christie & Co on 12 September 2018, the directors believe to be a true and fair value for the property as at the year 30 September 2019.

Fair value at 30 November 2019 is represented by:

£

Valuation in 2016

8,000

Valuation in 2017

(205,555

)

Cost

1,582,783

1,385,228

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.19

30.11.18

£

£

Trade debtors

139,930

-

Other debtors

669,540

382,498

809,470

382,498

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.11.19

30.11.18

£

£

Bank loans and overdrafts

142,540

28,107

Trade creditors

262,986

-

Taxation and social security

385,504

123,478

Other creditors

301,383

477,703

1,092,413

629,288

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.11.19

30.11.18

£

£

Bank loans

882,800

911,822

Other creditors

88,500

88,500

971,300

1,000,322

8.	SECURED DEBTS

The following secured debts are included within creditors:

30.11.19

30.11.18

£

£

Bank loans

911,822

939,929

The bank loan is secured by fixed and floating charges over the assets of the company.

9.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years end 30 November 2018 and

30 November 2017:

2018

2017

£

£

Balance outstanding at start of year

209,375

-

Amounts advanced

86,619

412,475

Amounts repaid

(24,600)

(203,100)

Amounts written off

Amounts waived

Balance outstanding at end of year

271,394

209,375

Interest free and repayable on demand

10.	RELATED PARTY DISCLOSURES

During the year, the company paid lease rental payments of £260,000 (2018 - Received £77,969) from a related company. The company also made a loan to the business. The balance outstanding as at the year end has been included within debtors falling due within one year and amounted to £102,623 (2018 - creditor balance of £288,771). The loan is interest free and repayable on demand.

Included within creditors due over 1 year, is a loan from a pension scheme in which the directors are beneficiaries. As at the year end the amount outstanding was £88,500 (2018 - £88,500). Interest is accruing on the loan at a rate of 3.25% and totalled £6,631 in the year (2018 - £6,419).

11.	POST BALANCE SHEET EVENTS

Since the year end there has been an outbreak of COVID-19 which has had an impact both nationally and globally. This is a non-adjusting event and narrative is included within the basis of preparation.