West Tower Country House Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 04077291 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

WEST TOWER COUNTRY HOUSE LIMITED

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

P C Bolton

D S Leathem

SECRETARIES:

D S Leathem

Mrs L Bolton

REGISTERED OFFICE:

16 Bazil Lane

Overton

Morecambe

Lancashire

LA3 3JB

REGISTERED NUMBER:

04077291 (England and Wales)

AUDITORS:

Studholme-Bell Limited

Chartered Accountants

& Statutory Auditors

Vantage House Euxton Lane

Euxton

Chorley

Lancashire

PR7 6TB

BANKERS:

Natwest Bank plc

11 Spring Gardens

Manchester

M2 1FB

SOLICITORS:

Hill Dickinson LLP

No. 1 St Paul's Square

Liverpool

L3 9SJ

FIXED ASSETS

Tangible assets

4

8,182,647

6,740,426

CURRENT ASSETS

Stocks

20,887

7,906

Debtors

921,784

647,202

Cash at bank and in hand

2,209,094

908,844

3,151,765

1,563,952

CREDITORS

Amounts falling due within one year

2,459,532

1,816,264

NET CURRENT ASSETS/(LIABILITIES)

692,233

(252,312

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,874,880

6,488,114

CREDITORS

Amounts falling due after more than one year

5

(412,420

)

(69,967

)

PROVISIONS FOR LIABILITIES

8

(62,290

)

(236,238

)

NET ASSETS

8,400,170

6,181,909

CAPITAL AND RESERVES

Called up share capital

2,500,000

2,500,000

Revaluation reserve

9

5,021,218

3,571,218

Retained earnings

9

878,952

110,691

8,400,170

6,181,909

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

All the members have consented to the preparation of an abridged Balance Sheet for the year ended 31 March 2022 in accordance with Section 444(2A) of the Companies Act 2006.

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 20 October 2022 and were signed on its behalf by:

P C Bolton - Director

1.	STATUTORY INFORMATION

West Tower Country House 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 as modified by the revaluation of certain assets.

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.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. All turnover arose wholly within the United Kingdom.

Income in respect of accommodation is recognised each night the customer stays, whilst other sales, including deposits, venue hire, restaurant and bar revenue, are recognised on the day of the service.

Deposits are carried forward as other creditors, deposits in advance.

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.

Plant and machinery

-

25% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are stated at cost or valuation less depreciation and any impairment.

No depreciation is provided ont he freehold property. It is company practice to maintain these assets in a continual state of sound repair and to make improvements thereto from time to time. The directors consider that the lives of these assets are so long and their residual values (based on price prevailing at the time of acquisition or subsequent valuations) are so high, that their cumulative depreciation is insignificant.

Impairment of assets

At each reporting date, assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of potential impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit and loss account.

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.

Government grants

Government grants received in relation to the Covid-19 support funding, include funds received from the furlough scheme and grants received in response to the closing of hospitality venues in the UK. Income from grants are shown within other income and are recognised during the period to which they relate.

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 expense for the year comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These 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 recognised on all timing differences at the reporting date except for certain exemptions. Unrelieved tax losses and other deferred tax assets are only recognised when 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 tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Hire purchase and leasing commitments

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as finance leases.

Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease. Where the implicit rate cannot be determined the company's incremental borrowing rate is used. Incremental direct costs, incurred in negotiating and and arranging the lease, if any, are included in the cost of the asset.

Assets are depreciated over the estimated useful life of the asset. Assets are assessed for impairment at each reporting date.

The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease payments are apportioned between capital repayment and finance charge, using the effective interest rate method, to produce a constant rate of charge on the balance of the capital repayments outstanding.

Pension costs and other post-retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are recognised in the Income Statement when due.

Financial instuments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans to related parties.

Debt instruments such as other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; debt instruments that are payable or receivable with one year, typically trade payables and receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Trade and other debtors

Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter, stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 56 (2021 - 41 ) .

4.	TANGIBLE FIXED ASSETS

Totals

£

COST OR VALUATION

At 1 April 2021

8,050,574

Additions

45,092

Revaluations

1,450,000

At 31 March 2022

9,545,666

DEPRECIATION

At 1 April 2021

1,310,148

Charge for year

52,871

At 31 March 2022

1,363,019

NET BOOK VALUE

At 31 March 2022

8,182,647

At 31 March 2021

6,740,426

Cost or valuation at 31 March 2022 is represented by:

Totals

£

Valuation in 2013

518,575

Valuation in 2014

1,147,424

Valuation in 2019

1,080,952

Valuation in 2020

(23,700

)

Valuation in 2022

1,450,000

Cost

5,372,415

9,545,666

If freehold property had not been revalued it would have been included at the following historical cost:

31.3.22

31.3.21

£

£

Cost

3,926,749

3,926,749

Aggregate depreciation

1,734,114

1,655,579

The freehold property was valued on 1 March 2022 by CBRS Limited (Registered Valuers), on an open market basis at £8,100,000. This valuation has been relied upon by the directors as at 31 March 2022.

The parent company, West Tower Property Limited, has a bank loan which is secured by way of a debenture over all of the assets of West Tower Country House Limited, a first legal charge over the property held by West Tower Country House Limited and a cross guarantee between the bank and West Tower Country House Limited.

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

Totals

£

COST OR VALUATION

At 1 April 2021

and 31 March 2022

60,801

DEPRECIATION

At 1 April 2021

17,842

Charge for year

11,487

At 31 March 2022

29,329

NET BOOK VALUE

At 31 March 2022

31,472

At 31 March 2021

42,959

5.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN FIVE YEARS

31.3.22

31.3.21

£

£

Repayable by instalments

Bank loans more 5 yr by instal

8,333

-

6.

LOANS

An analysis of the maturity of loans is given below:

31.3.22

31.3.21

£

£

Amounts falling due within one year or on demand:

Bank loans

91,667

-

Amounts falling due between one and two years:

Bank loans - 1-2 years

100,000

50,000

Amounts falling due between two and five years:

Bank loans - 2-5 years

300,000

-

Amounts falling due in more than five years:

31.3.22

31.3.21

£

£

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

8,333

-

7.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.22

31.3.21

£

£

Bank loans

500,000

50,000

Hire purchase contracts

19,967

35,096

519,967

85,096

Hire purchase contracts are secured on the assets to which they relate.

The loan of £500,000 reflects a Coronavirus Business Interruptions Loan. This loan is unsecured within the Financial Statements.

8.	PROVISIONS FOR LIABILITIES

31.3.22

31.3.21

£

£

Deferred tax

62,290

236,238

Deferred

tax

£

Balance at 1 April 2021

236,238

Provided during year

(173,948

)

Balance at 31 March 2022

62,290

9.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 April 2021

110,691

3,571,218

3,681,909

Profit for the year

930,261

930,261

Dividends

(162,000

)

(162,000

)

Revaluation reserve

-

1,450,000

1,450,000

At 31 March 2022

878,952

5,021,218

5,900,170

The revaluation reserve relates to the freehold property.

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

The Report of the Auditors was unqualified.

Alexander Bell FCA MAAT (Senior Statutory Auditor)

for and on behalf of Studholme-Bell Limited

11.	GUARANTEES AND OTHER FINANCIAL COMMITMENTS

The company has provided a cross guarantee in the sum of £3,424,410 (2021: £3,550,000) on behalf of the parent company, West Tower Property Limited, in relation to a bank loan held in the company.

12.	ULTIMATE PARENT COMPANY

The ultimate parent is West Tower Property Limited, a company registered in England & Wales. The company's registered office is 16 Bazil Lane, Overton, Morecambe, Lancashire, LA3 3JB and the principle place of business is Mill Lane, Aughton, Ormskirk, L39 7HJ.