The British Association of Snowsport Instructors Limited - Period Ending 2020-05-31

The British Association of Snowsport Instructors Limited

(Registration number: SC278963)
Balance Sheet as at 31 May 2020

	Note	2020 £	2019 £
Fixed assets
Tangible assets	5	536,472	566,721
Current assets
Stocks	6	57,702	39,306
Debtors	7	150,367	179,238
Cash at bank and in hand		156,977	278,218
		365,046	496,762
Creditors: Amounts falling due within one year	8	(287,473)	(350,155)
Net current assets		77,573	146,607
Total assets less current liabilities		614,045	713,328
Creditors: Amounts falling due after more than one year	8	(175,000)	-
Net assets		439,045	713,328
Capital and reserves
Profit and loss account		439,045	713,328
Total equity		439,045	713,328

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 Board on 27 May 2021 and signed on its behalf by:
 

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

M J Agutter
Director

The British Association of Snowsport Instructors Limited

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

1	General information

The company is a company limited by guarantee, incorporated in Scotland.

The address of its registered office is:
Morlich House
17 The Square
Grantown-On-Spey
Morayshire
PH26 3HG
United Kingdom

These financial statements were authorised for issue by the Board on 27 May 2021.

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 were prepared in accordance with Financial Reporting Standard 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

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

Going concern

The financial statements have been prepared on a going concern basis.

See note 3 for further details of directors assessment of going concern.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 31 May 2021 was Paul Capewell, who signed for and on behalf of A9 Accountancy Limited.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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.

The British Association of Snowsport Instructors Limited

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

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

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.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land and buildings	2% straight line
Plant and machinery	25% straight line
Computer equipment	33% straight line
Office fixtures fittings and equipment	20% straight line
Software	12.5% & 14.3% straight line

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 merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. 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 receivables.

The British Association of Snowsport Instructors Limited

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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 subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

The British Association of Snowsport Instructors Limited

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

3	Going concern

The directors acknowledge the risk of Brexit and how it may impact the company’s overseas activity in the coming year. The company has agreements in place with skiing nations so that the instructors can continue to run courses in the EU and due to the good reputation of the organisation the BASI qualified instructors are in high demand. Following the transitional agreement between the United Kingdom and the EU countries the BASI instructors are expected to be able to work under the terms of any such agreement and therefore there is no immediate risk that the company will be unable to continue trading for the foreseeable future.

The COVID-19 pandemic has greatly impacted the company's operations. The currently known impacts of COVID-19 on the company are:

- A decline in turnover for the last 3 months of the year to May 2020 and the following 7 months to December 2020 for the year to May 2021.
- The company was unable to operate courses during times of lockdown in both the UK and with business partners in Europe.
-The company had to refund several courses that were booked in advance.

These developments resulted in a net loss of £274,283 for the year.

As a result of these matters there is a material uncertainty that may cast a significant doubt upon the company's ability to continue as a going concern and therefore whether the company will realise its assets and settle its liabilities in the ordinary course of business at the amounts recorded in the financial statements.

In response to these matters, the entity has taken the following actions:

- Engaged the services of an acting CEO - the acting CEO has reduced the annual operating costs of BASI by in excess of £400,000 per annum, streamlined the booking and IT processes, outsourced the mechanical parts of the finance function and significantly improved operational efficiencies - this has resulted in a return to a surplus of income over expenditure for certain months in 2021.
-Obtained a Coronavirus Business Interruption Loan of £175,000 to provide mid term working capital.
-Made use of the Coronavirus Job Retention Scheme for employees to safeguard valuable employee resource for the future.
- Investigated the option of selling certain surplus fixed assets which would generate a significant capital surplus. In the view of the directors this disposal is not requried for financial reasons and is a strategic move rather than requirement.
-Continued to offer courses online where possible and physical attendance educational courses throughout the period and post year end period. These courses are deemed to be educational and have therefore been able to continue during periods of Covid-19 restrictions in most countries.

With vaccines now available for the virus the organisation is hopeful for future trading. Management and the Board have determined that the actions taken are sufficient to mitigate the uncertainty and have therefore prepared the financial statements on a going concern basis.

4	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 17 (2019 - 19).

The British Association of Snowsport Instructors Limited

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

5	Tangible assets

	Land and buildings £	Computer equipment £	Office fixtures, fittings and equipment £	Software £	Plant and machinery £	Total £
Cost or valuation
At 1 June 2019	621,503	45,716	40,148	121,950	40,197	869,514
At 31 May 2020	621,503	45,716	40,148	121,950	40,197	869,514
Depreciation
At 1 June 2019	136,366	41,976	39,740	45,135	39,576	302,793
Charge for the year	12,430	1,851	162	15,364	442	30,249
At 31 May 2020	148,796	43,827	39,902	60,499	40,018	333,042
Carrying amount
At 31 May 2020	472,707	1,889	246	61,451	179	536,472
At 31 May 2019	485,137	3,740	408	76,815	621	566,721

Included within the net book value of land and buildings above is £472,707 (2019 - £485,137) in respect of freehold land and buildings.
 

6

Stocks

	2020 £	2019 £
Other inventories	57,702	39,306

The British Association of Snowsport Instructors Limited

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

7

Debtors

	2020 £	2019 £
Trade debtors	50,567	102,660
Other debtors	99,800	76,578
	150,367	179,238

8

Creditors

Creditors: amounts falling due within one year

	Note	2020 £	2019 £
Due within one year
Trade creditors		25,274	134,321
Taxation and social security		26,973	15,040
Other creditors		235,226	200,794
		287,473	350,155
Due after one year
Loans and borrowings	9	175,000	-

Creditors: amounts falling due after more than one year

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	9	175,000	-

	2020 £	2019 £
Due after more than five years
After more than five years by instalments	47,727	-

	-	-

9	Loans and borrowings

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	175,000	-

The British Association of Snowsport Instructors Limited

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

10	Related party transactions

Summary of transactions with other related parties

BASI Promotions Limited is a company limited by guarantee which is wholly owned by the members of The British Association of Snowsport Instructors Limited. The company charged a management fee of £42,000 (2019- £42,000) for management services.