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Registered number: 03410333
DAVENEY LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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DAVENEY LIMITED
REGISTERED NUMBER: 03410333
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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DAVENEY LIMITED
REGISTERED NUMBER: 03410333
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2021
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Capital redemption reserve
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Equity attributable to owners of the parent Company
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the consolidated statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 5 to 21 form part of these financial statements.
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DAVENEY LIMITED
REGISTERED NUMBER: 03410333
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2021
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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DAVENEY LIMITED
REGISTERED NUMBER: 03410333
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2021
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Capital redemption reserve
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the consolidated statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 5 to 21 form part of these financial statements.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
Daveney Limited is a private company limited by shares and incorporated in England and Wales, registration number 03410333. The registered office is Honingham Road, Barnham Broom, Norwich, Norfolk, NR9 4DD.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The financial statements are presented in sterling which is the functional currency of the Company and rounded to the nearest £.
The financial year was extended to 31 March 2021 due to the impact of the Covid-19 pandemic. This means that the current period covers the 18 months from 1 October 2019 to 31 March 2021 whereas the comparative covers the 12 month period from 1 October 2018 to 30 September 2019.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
The Group to which this Company heads operates the Barnham Broom Golf Club in Norfolk. As part of their going concern assessment, the directors have considered the Company and Group’s position at the time of signing the financial statements.
As part of their assessment, the directors have prepared forecasts until December 2023, taking into consideration expected trading performance, profitability and cash flow based on the current economic climate. In addition, the directors have considered the Group’s current working capital facilities, together with the range of measures they have, and may take, to mitigate ongoing costs.
Based on the above assessment, the directors have concluded that they have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future and at least 12 months from the date of signing the financial statements, they therefore continue to adopt the going concern basis of accounting in preparing these financial statements.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
2.Accounting policies (continued)
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:
Accommodation income is recognised on a straight line basis over the period to which the income relates.
Food and drink, spa, golf passes and golf shop income is recognised at the point of sale.
Gym, golf and spa membership is recognised on a straight line basis over the period of membership.
Charges on properties managed and facilities provided are recognised on a straight line basis over the period for which the services relate.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Under FRS 102 Section 1A, management have elected to use a previous revaluation of their leasehold property before the date of transition as its deemed cost at the revaluation date.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Leasehold land and buildings
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Assets under construction
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Not depreciated until brought into use
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
As a result of the current rental agreement, the Directors consider the residual value of the leasehold property to be greater than zero. Accordingly, they consider the depreciation policy of 1-2% to be a fair estimate.
All investments are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is 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.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
2.Accounting policies (continued)
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to the Consolidated statement of comprehensive income on a straight line basis over the lease term.
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Leased assets: the Group as lessee
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of financial position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of financial position date.
All borrowing costs are recognised in profit or loss in the period in which they are incurred.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
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 and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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The average monthly number of employees, including directors, during the period was 133 (2019 - 137).
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
4.Intangible assets (continued)
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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Leasehold land & buildings
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Assets under construction
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
5.Tangible fixed assets (continued)
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Leasehold land and buildings
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Assets under construction
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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The hire purchase contract for the above assets are held within another company within the Group.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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Other fixed asset investments
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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Investments in subsidiary companies
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Other fixed asset investments
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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The following were subsidiary undertakings of the Company:
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Holds assets used in the group
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Barnham Broom Golf Club Limited
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Running of a hotel, golf and country club with conference and leisure facilities
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Barnham Broom Management Company Limited
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Management and administration of timeshare ownership and multi-ownership apartments
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The registered office of all subsidiary undertakings is Honingham Road, Barnham Broom, Norwich, Norfolk, NR9 4DD.
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Amounts owed by group undertakings
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Prepayments and accrued income
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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The bank overdraft is secured by a debenture dated 12 April 2012 and first legal charges over leasehold properties of the Daveney Limited group.
The bank loan is secured by a debenture dated 12 April 2012 and first legal charges over leasehold properties of the Daveney Limited group, an unlimited guarantee from Daveney Limited and a directors personal guarantee from C H Bothway.
The finance lease and hire purchase creditors are secured on the assets concerned.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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The bank loan is secured by a debenture dated 12 April 2012 and first legal charges over leasehold properties of the Daveney Limited group, an unlimited guarantee from Daveney Limited and a directors personal guarantee from C H Bothway.
The finance lease and hire purchase creditors are secured on the assets concerned.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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The bank loan is secured by a debenture dated 12 April 2012 and first legal charges over leasehold properties of the Daveney Limited group, an unlimited guarantee from Daveney Limited and a directors personal guarantee from C H Bothway.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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Authorised, allotted, called up and partly paid
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4,659,856 (2019 - 4,659,856) Allotted, called up and partly paid shares of £0.25 each
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Share premium account
The capital surplus received by the firm over the par value of its shares.
Revaluation reserve
The surplus or deficit arising on historical valuations of company assets.
Capital redemption reserve
This reserve records the nominal value of shares repurchased by the company.
Other reserves
Other reserves include capital contributions made to subsidiary undertakings.
Profit and loss account
The profit and loss account includes all current and prior retained profits and losses.
The Company supports a cross guarantee and debenture for the bank with respect to Barnham Broom Limited, Barnham Broom Management Company Limited and Barnham Broom Golf Club Limited. The value of the guarantee at the balance sheet date was £869,959 (2019 - £293,630).
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
Group
The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £82,717 (2019 - £48,379). Contributions totalling £533 (2019 - £6,818) were payable to the fund at the balance sheet date and are included in creditors.
Company
Contributions payable by the Company for the year amounted to £27,410 (2019 - £17,825). Contributions totalling £Nil (2019 - £Nil) were payable to the fund at the balance sheet date and are included in creditors.
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Commitments under operating leases
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At 31 March 2021 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Transactions with directors
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During the year an amount of £8,232 (2019 - £48,599) was advanced to C H Bothway. The balance at the year end was a debtor of £2,750 (2019 - £4,195) and this loan was interest free. This amount has been reimbursed since the year end.
Also during the year an amount of £9,677 (2019 - £2,309) was advanced to T E Beckett. The balance at the year end was a debtor of £4,509 (2019 - £4,486) and this loan was interest free. This amount has been reimbursed since the year end.
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DAVENEY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2021
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Related party transactions
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The Company has taken advantage of the exemption available under FRS 102 Section 33.1A not to disclose the transactions between wholly owned members of the Group.
During the year, the Group made payments of £Nil (2019 - £26,000) to C H Bothway (director) for an option to purchase land. Option payments to date total £319,000 (2019 - £319,000).
The bank overdraft and loan of £869,959 (2019 - £293,630) was secured against land owned and a personal guarantee by C H Bothway.
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The ultimate controlling party is C H Bothway as a result of his shareholding.
The auditors' report on the financial statements for the period ended 31 March 2021 was unqualified.
The audit report was signed on 30 March 2022 by John Atkins ACA FCCA (Senior statutory auditor) on behalf of Larking Gowen LLP.
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