Sutton Veny House Limited - Period Ending 2020-03-31

Registration number: 04653466

Sutton Veny House Limited

Statutory Financial Statements

for the Year Ended 31 March 2020

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Sutton Veny House Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Sutton Veny House Limited

Company Information

Director

M C Bila

Company secretary

S White

Registered office

Mendip Court Bath Road Wells Somerset BA5 3DG

Bankers

Barclays Bank PLC 4th Floor Bridgewater House Counterslip Finzels Reach Bristol BS1 6BX

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

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Sutton Veny House Limited

(Registration number: 04653466)
Balance Sheet as at 31 March 2020

	Note	2020  £	2019  £
Fixed assets
Intangible assets	4	190,833	253,333
Tangible assets	5	1,956,947	1,974,465
		2,147,780	2,227,798
Current assets
Stocks	6	2,725	2,725
Debtors	7	327,626	117,501
Cash at bank and in hand		138,190	184,503
		468,541	304,729
Creditors: Amounts falling due within one year	8	(920,136)	(903,950)
Net current liabilities		(451,595)	(599,221)
Total assets less current liabilities		1,696,185	1,628,577
Creditors: Amounts falling due after more than one year	8	(339,019)	(477,623)
Deferred tax liabilities		(3,194)	(1,448)
Net assets		1,353,972	1,149,506
Capital and reserves
Called up share capital		8,000	8,000
Share premium reserve		296,000	296,000
Profit and loss account		1,049,972	845,506
Total equity		1,353,972	1,149,506

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 12 March 2021
 

.........................................

M C Bila
Director

The notes on pages 3 to 9 form an integral part of these financial statements.
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Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Mendip Court
Bath Road
Wells
Somerset
BA5 3DG

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Name of parent of group

These financial statements are consolidated in the financial statements of MCB Investments Limited.

The financial statements of MCB Investments Limited may be obtained from Companies House.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover represents amounts receivable during the year for the provision of care and accommodation, where the amount received relates to a period which covers the balance sheet date, the amount is apportioned over the period to which it relates. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

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Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land	Nil
Freehold property	1% on cost
Fixtures, fittings and equipment	15% on cost

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	Straight line between 7.5 and 20 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

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Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

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Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

Financial instruments (continued)

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was as follows:

	2020  No.	2019  No.
Average number of employees	63	62

4

Intangible assets

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Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

	Goodwill  £
Cost
At 1 April 2019 and at 31 March 2020	750,000
Amortisation
At 1 April 2019	496,667
Amortisation charge	62,500
At 31 March 2020	559,167
Carrying amount
At 31 March 2020	190,833
At 31 March 2019	253,333

5

Tangible assets

	Freehold land and buildings £	Fixtures, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 1 April 2019	2,123,171	305,797	-	2,428,968
Additions	-	8,900	623	9,523
At 31 March 2020	2,123,171	314,697	623	2,438,491
Depreciation
At 1 April 2019	172,854	281,649	-	454,503
Charge for the year	17,170	9,715	156	27,041
At 31 March 2020	190,024	291,364	156	481,544
Carrying amount
At 31 March 2020	1,933,147	23,333	467	1,956,947
At 31 March 2019	1,950,317	24,148	-	1,974,465

Freehold land of £406,160 (2019 - £406,160) is not depreciated.

6

Stocks

	2020  £	2019  £
Stocks	2,725	2,725

7

Debtors

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Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

	Note	2020  £	2019  £
Trade debtors		246,718	85,419
Amounts due from group undertakings		15,000	-
Other debtors		50,829	20,134
Prepayments		15,079	11,948
		327,626	117,501

8

Creditors

	2020  £	2019  £
Due within one year
Trade creditors	75,120	28,904
Amounts owed to group undertakings	690,315	686,808
Social security and other taxes	12,467	27,332
Outstanding defined contribution pension costs	2,050	7,815
Other creditors	14,991	8,326
Accrued expenses	73,360	71,360
Corporation tax liability	51,833	73,405
	920,136	903,950
Due after one year
Amounts owed to group undertakings	339,019	477,623

9

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £14,734 (2019 - £6,263).

Contributions totalling £2,050 (2019 - £7,815) were payable to the scheme at the end of the year and are included in creditors.

10

Obligations under leases and hire purchase contracts

At 31 March 2020, the company had total commitments under non-cancellable operating leases over the remaining life of those assets of £12,172 (2019 - £16,932).

11

Contingent liabilities

The company is bound by a cross company guarantee with its parent company MCB Investments Limited in respect of bank borrowings. The amount guaranteed is £6,070,313 (2019 - £6,394,063).

12

Parent and ultimate parent undertaking

The company's ultimate and only parent company is MCB Investments Limited, incorporated in England and Wales.

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Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

13

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 12 March 2021 was Simon Worsley, who signed for and on behalf of Hazlewoods LLP.

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