BRAINTREE_LEISURE_LIMITED - Accounts

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Braintree Leisure Limited is a private company limited by shares incorporated in England and Wales. The registered office is 29-30 Fitzroy Square, London, W1T 6LQ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The market values of the properties held in stock are considered by the Director and the lenders to be significantly higher than the cost as reported in the financial statements.true

The Company is in a net liability position at the reporting date, and has significant loans with lenders who provide continuing support for the Company secured on the properties held in stock.

The lenders have demonstrated their intention to continually support the Company up until the facility expires in July 2022. The director is confident that new facilities will be in place prior to the expiry of the existing facility.

During the year, the Company continued to be affected by the Corona Virus pandemic. This led to certain leisure tenants being unable to pay their rental charges as they fell due as they were forced by the UK Government to temporarily close due to national lockdown measures.

The Company's main lenders demonstrated their continuing support by allowing capitalisation of the quarterly interest payments for one quarter by amending the covenant requirements, , which has now been paid in full by the date of signing the financial statements.

As a result of the continued support of its lenders alongside careful cost management, the Director believes they have sufficient resources to pay their debts as they fall due. This situation will continue to be monitored on an on-going basis, and as such the Company continues to adopt the going concern basis of accounting in preparing the financial statements.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The average monthly number of persons (including directors) employed by the company during the year was:

The market value of the development property included in stock is significantly above book value.

Creditors falling due in more than one year relates to a loan secured by way of fixed and floating charges over all property and assets present and future of the company.

The company’s assets are pledged in support of debt funding provided to itself and Braintree Properties LLP, an entity under common control.

Management fees of £426,235 (2020: £500,000) were charged by Williams Group UK Properties Limited.

At the balance sheet date £430,746 (2020: £402,266) due from Williams Group UK Properties Limited, £Nil (2020: £12,000) due from Braintree Properties (B3) LLP, £744,797 (2020: £696,064) due from Braintree (B3F) Limited, £509,481 (2020: £514,681) due from Guildford (B4F) Limited and £2,284,801 (2020: £2,284,801) due from Honeyview Investments Limited.

The company also owes £1,307,783 (2020: £783,960) to Braintree Properties LLP.

All entities are under the control of P L Williams.