Redwood Pubs Limited Filleted accounts for Companies House (small and micro)

REDWOOD PUBS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: SC455542

Redwood Pubs Limited

Filleted Unaudited Financial Statements

31 August 2021

Redwood Pubs Limited

Statement of Financial Position

31 August 2021

	2021		2020
Note	£	£	£

Fixed assets

Tangible assets	7		2,317,303	2,367,127

Current assets

Stocks		22,992	39,793
Debtors	8	86,538	66,428
Cash at bank and in hand		200,420	137,822
		---------	---------
		309,950	244,043

Creditors: amounts falling due within one year	9	409,283		664,995
		---------		---------
Net current liabilities			99,333	420,952
			------------	------------
Total assets less current liabilities			2,217,970	1,946,175

Creditors: amounts falling due after more than one year	10		219,332	–

Provisions for liabilities

Deferred tax	51,204	51,786
	------------	------------
Net assets	1,947,434	1,894,389
	------------	------------

Redwood Pubs Limited

Statement of Financial Position (continued)

31 August 2021

	2021		2020
Note	£	£	£

Capital and reserves

Called up share capital	12	1,684	1,684
Profit and loss account		1,945,750	1,892,705
		------------	------------
Shareholders funds		1,947,434	1,894,389
		------------	------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 August 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

These financial statements were approved by the board of directors and authorised for issue on 24 May 2022 , and are signed on behalf of the board by:

Mr J Rollo

Director

Company registration number: SC455542

Redwood Pubs Limited

Notes to the Financial Statements

Year ended 31 August 2021

1. General information

The company is a private company limited by shares, registered in Scotland. The trading address of the company is The Boars Rock, 168 Arbroath Road, Dundee, DD4 7PY

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The company has experienced an extreme reduction in its sales over the last two financial years due to the COVID crisis and the lockdown measures and other restrictions on hospitality establishments imposed by the Scottish Government. During this difficult period the company furloughed its staff and received the Governments Job Retention Scheme grant as well as Business Hardship Fund Grants. The company also obtained a Business Interruption Loan. Based on the company's results for the current financial year, the directors are confident that the company's trade will return to pre COVID levels. They have also assessed that the company has adequate resources to meet the ongoing costs of the business for the foreseeable future. For this reason the financial statements have been prepared on a going concern basis which presumes the realisation of assets and liabilities in the normal course of business.

Consolidation

The company is a wholly owned subsidiary undertaking of a small group and as such is not required by the Companies Act 2006 to prepare group accounts. These financial statements present information about the company as an individual undertaking.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

The turnover represents amounts charged to customers net of returns and allowances (excluding VAT) for sales of food and beverage items and the use of pub facilities during the year. Turnover is recognised at the point of sale. The other operating income represents amounts charged in respect of rent for both commercial and residential property (excluding VAT).

Corporation tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	10% straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	2% reducing balance
Fixture and fittings	-	33% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Stocks

Stocks are valued at the lower of cost and net realisable value.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 19 (2020: 23 ).

5. Tax on profit

Major components of tax expense

	2021	2020
	£	£

Current tax:

UK current tax expense	23,339	21,655

Deferred tax:

Origination and reversal of timing differences	( 582)	4,791
	--------	--------
Tax on profit	22,757	26,446
	--------	--------

6. Intangible assets

	Goodwill
	£
Cost
At 1 September 2020 and 31 August 2021	158,875
	---------
Amortisation
At 1 September 2020 and 31 August 2021	158,875
	---------
Carrying amount
At 31 August 2021	–
	---------
At 31 August 2020	–
	---------

7. Tangible assets

	Land and buildings	Fixtures and fittings	Total
	£	£	£
Cost
At 1 September 2020	2,666,655	25,700	2,692,355
Additions	–	1,750	1,750
	------------	--------	------------
At 31 August 2021	2,666,655	27,450	2,694,105
	------------	--------	------------
Depreciation
At 1 September 2020	303,250	21,978	325,228
Charge for the year	47,268	4,306	51,574
	------------	--------	------------
At 31 August 2021	350,518	26,284	376,802
	------------	--------	------------
Carrying amount
At 31 August 2021	2,316,137	1,166	2,317,303
	------------	--------	------------
At 31 August 2020	2,363,405	3,722	2,367,127
	------------	--------	------------

8. Debtors

	2021	2020
	£	£
Trade debtors	82,533	55,889
Other debtors	4,005	10,539
	--------	--------
	86,538	66,428
	--------	--------

9. Creditors: amounts falling due within one year

	2021	2020
	£	£
Bank loans and overdrafts	15,668	50,000
Trade creditors	61,955	91,007
Amounts owed to associated companies	232,772	381,663
Corporation tax	42,097	60,356
Social security and other taxes	33,002	44,573
Other creditors	23,789	37,396
	---------	---------
	409,283	664,995
	---------	---------

10. Creditors: amounts falling due after more than one year

	2021	2020
	£	£
Bank loans and overdrafts	219,332	–
	---------	----

Included within creditors: amounts falling due after more than one year is an amount of £31,332 (2020: £Nil) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

11. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2021	2020
	£	£
Included in provisions for liabilities	51,204	51,786
	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2021	2020
	£	£
Accelerated capital allowances	51,204	51,786
	--------	--------

12. Called up share capital

Issued, called up and fully paid

	2021		2020
	No.	£	No.	£
Ordinary shares of £ 0.01 each	168,361	1,684	168,361	1,684
	---------	-------	---------	-------

13. Related party transactions

Throughout the year, the company transferred and received funds from related parties and at the year end, the amount due to be paid to these related parties was £232,772 (2020 - £381,663). During the year the company paid £100,000 (2020 - £123,000) in management charges to its ultimate parent company.

14. Controlling party

The company is under the control of John Rollo and Karen Rollo who are the owners of the ultimate parent company, Rollo Pub Holdings Limited. Rollo Pub Holdings Limited is registered in Scotland at Stannergate House, 41 Dundee Road West, Broughty Ferry, Dundee, DD5 1NB.