Fence Gate Lodge Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 09609575 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST AUGUST 2020

FOR

FENCE GATE LODGE LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

K Berkins

Mrs M Berkins

Mrs K A Beaumont

REGISTERED OFFICE:

Fence Gate

Wheatley Lane

Fence

Burnley

Lancashire

BB12 9EE

REGISTERED NUMBER:

09609575 (England and Wales)

AUDITORS:

Ainsworths Limited

Chartered Accountants

and Statutory Auditors

Charter House

Stansfield Street

Nelson

Lancashire

BB9 9XY

BANKERS:

National Westminster Bank Plc

2 Leeds Road

Nelson

Lancashire

BB9 9SY

FIXED ASSETS

Tangible assets

4

1,441,220

1,507,124

CURRENT ASSETS

Stocks

12,065

14,464

Debtors

5

26,353

38,913

Cash at bank and in hand

56,504

24,854

94,922

78,231

CREDITORS

Amounts falling due within one year

6

347,858

531,471

NET CURRENT LIABILITIES

(252,936

)

(453,240

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,188,284

1,053,884

CREDITORS

Amounts falling due after more than one year

7

(2,267,367

)

(2,134,596

)

PROVISIONS FOR LIABILITIES

(196,821

)

(160,297

)

NET LIABILITIES

(1,275,904

)

(1,241,009

)

CAPITAL AND RESERVES

Called up share capital

1

1

Retained earnings

(1,275,905

)

(1,241,010

)

SHAREHOLDERS' FUNDS

(1,275,904

)

(1,241,009

)

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 27th May 2021 and were signed on its behalf by:

K Berkins - Director

1.	STATUTORY INFORMATION

Fence Gate Lodge 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.

The financial statements have been prepared on a going concern basis which assumes that the company will be able to meet its liabilities as they fall due. Although these financial statements cover a period which has included a Covid lockdown the company has still generated a profit. The directors are confident in the current and future trading performance of the company, however there is an uncertainty in respect of any future Covid lockdowns and whether the government will continue to provide any support. Despite this uncertainty, the directors have concluded that it is appropriate for these financial statements to be prepared on a going concern basis. In addition, a fellow subsidiary, Fence Gate Limited, has confirmed that they will provide support for at least 12 months following the approval of these financial statements.

If the company were unable to continue to trade, adjustments would have to be made to reduce the value of the assets to their recoverable amounts, to provide for any further liabilities that may arise, and to reclassify fixed assets and long term liabilities as current assets and liabilities respectively.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

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. Other estimates, assumptions and judgements are applied by the company and include, but are not limited to, depreciation of tangible fixed assets and provisions. These estimates, assumptions and judgements are also evaluated on a continual basis but are not considered significant.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% over 50 years

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Stocks

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

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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 15 (2019 - 14 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1st September 2019

and 31st August 2020

2,468,228

118,441

258,788

2,845,457

DEPRECIATION

At 1st September 2019

1,224,516

37,076

76,741

1,338,333

Charge for year

26,388

12,205

27,311

65,904

At 31st August 2020

1,250,904

49,281

104,052

1,404,237

NET BOOK VALUE

At 31st August 2020

1,217,324

69,160

154,736

1,441,220

At 31st August 2019

1,243,712

81,365

182,047

1,507,124

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:

Plant and

machinery

£

COST

At 1st September 2019

and 31st August 2020

72,251

DEPRECIATION

At 1st September 2019

22,660

Charge for year

7,438

At 31st August 2020

30,098

NET BOOK VALUE

At 31st August 2020

42,153

At 31st August 2019

49,591

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.20

31.8.19

£

£

Trade debtors

5,080

13,481

Other debtors

21,273

25,432

26,353

38,913

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.20

31.8.19

£

£

Bank loans and overdrafts

8,363

103,341

Trade creditors

24,433

16,132

Amounts owed to group undertakings

226,474

312,554

Taxation and social security

38,238

28,678

Other creditors

50,350

70,766

347,858

531,471

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.20

31.8.19

£

£

Bank loans

2,267,367

2,134,596

Amounts falling due in more than five years:

Repayable by instalments

Bank loans (> 5 years)

12,750

-

8.	SECURED DEBTS

The following secured debts are included within creditors:

31.8.20

31.8.19

£

£

Bank loans

2,275,730

2,237,937

The bank loans are secured by both debenture and cross guarantee as detailed in the contingent liabilities note.

9.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Ian Dugmore (Senior Statutory Auditor)

for and on behalf of Ainsworths Limited

10.	CONTINGENT LIABILITIES

Fence Gate Lodge Limited, its parent undertaking Kevin Berkins Quality Meat Limited and its associated undertakings of Fence Gate Limited, The Eagle at Barrow Limited and Michelle.B Limited, have guaranteed each others liabilities to the bank. The aggregate amount of net bank borrowings outstanding at 31st August 2020 was £2,705,249 (2019: £3,136,250). The security given by Fence Gate Lodge Limited includes a legal charge over the company's property together with a fixed and floating charge over all the assets of the company.

11.	ULTIMATE PARENT COMPANY

The company's results are included within consolidated financial statements of its ultimate parent company, Kevin Berkins Quality Meats Limited, whose registered office is Fence Gate, Wheatley Lane Road, Fence, Burnley, Lancashire, BB12 9EE.