School House Leisure Limited - Limited company accounts 20.1
School House Leisure Limited - Limited company accounts 20.1
| REGISTERED NUMBER: |
| Strategic Report, Report of the Directors and |
| Audited Financial Statements |
| for the Period 1 April 2019 to 30 September 2020 |
| for |
| School House Leisure Limited |
| Trading as |
| Moddershall Oaks |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Contents of the Financial Statements |
| for the Period 1 April 2019 to 30 September 2020 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Income Statement | 10 |
| Other Comprehensive Income | 11 |
| Statement of Financial Position | 12 |
| Statement of Changes in Equity | 13 |
| Statement of Cash Flows | 14 |
| Notes to the Statement of Cash Flows | 15 |
| Notes to the Financial Statements | 17 |
| School House Leisure Limited |
| Trading as Moddershall Oaks |
| Company Information |
| for the Period 1 April 2019 to 30 September 2020 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditors |
| Porthill Lodge |
| High Street |
| Wolstanton |
| Newcastle under Lyme |
| ST5 0EZ |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Strategic Report |
| for the Period 1 April 2019 to 30 September 2020 |
| The directors present their strategic report for the period 1 April 2019 to 30 September 2020. |
| INTRODUCTION |
| On the 1st December 2000 School House Leisure Ltd commenced trading under the name Modershall Oaks. Operating initially as a day spa the business has evolved over the past 20 years into a boutique spa destination with both day and stay facilities, a wedding venue, a restaurant and bar, a wellness centre and café. |
| The Board of Directors consists of; |
| Phillip Holland - Managing Director |
| Delia Holland - Director/Company Secretary |
| Penny Weston - Director |
| Our vision is to be the best at everything we do by employing great people who make Moddershall Oaks a special place to be. This is defined by a set of core values which define the standards we expect all our employees to demonstrate. |
| REVIEW OF BUSINESS |
| Development, performance and financial position: |
| The business performance up until March 2020 was exceptional and the Directors believed the year end results to 31st March 2020 would yield its best results ever. |
| Covid-19 Pandemic |
| From the 23rd March 2020 the business was forced to close its operations due to UK Government restrictions. This impacted 12 out of the next 15 months. This had a devastating effect on company profitability in the period. |
| Due to the forced closures during the pandemic, the Directors made the decision to extend the financial year to 18-months (1st April 2019 to 30th September 2020). |
| Due to the immediacy of the closure/s in this period the company sustained significant loss of stock on perishable goods. This included food and beverage, and some therapy products. |
| Given the extension of the financial year and period of closure it is not possible to compare like for like performance in the period. |
| However, the Directors are satisfied they did all they possibly could to mitigate losses in the period, and to protect the business, its assets and employees. The company made use of the Coronavirus Job Retention Scheme to pay its employees through the closure period. Most employees were furloughed with the exception of its maintenance and a skeleton administration team. |
| During the period of closure the directors utilised the time to extensively refurbish the property and improvements were made to guest amenity in readiness to reopen. |
| The Directors are satisfied with the financial results achieved given the dire circumstances the company was forced to endure. |
| Future developments |
| Consumer demand post covid closure from the 17th May 2021 has been very positive indeed and the business has enjoyed high occupancy and profitability. |
| The strategy of the creation of long term value for our shareholders has not changed since incorporation. The directors believe long term value is achieved by sales growth, profitability, cash generation and strong return on capital employed. These shared views drive decision making and behaviour in the Company with the financial objectives aligned and focus on four key objectives: |
| - Increasing revenue; |
| - Improving operating margins; |
| - Maximising return on capital employed; |
| - Maximising free cash flow. |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Strategic Report |
| for the Period 1 April 2019 to 30 September 2020 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The main risk to the company relates to any further Covid-19 related closure which may be imposed by government. This is a serious risk due to the nature of the industry in which the business operates. |
| To mitigate this risk the company has forecast various scenarios and has procedures in place to mitigate short periods of closure should these be imposed. |
| Financial instrument risk |
| The main risks associated with the company's financial assets and liabilities are set out below: |
| Interest rate risks |
| The company finances its operations through a mixture of retained profits and external borrowings. The external borrowings are at floating interest rates. |
| Liquidity risk |
| The company aims to mitigate liquidity risk by managing cash generated by its operations. Expenditure is closely tracked to budgets. |
| KEY PERFORMANCE INDICATORS |
| 2020 | 2019 |
| % | % |
| Return on capital employed | 8.6 | 12.9 |
| Gross margin | 37.4 | 48.2 |
| Net profit margin | 2.2 | 10.6 |
| Return on capital employed is operating profit as a percentage of equity shareholders' funds. |
| Gross margin is a gross profit as a percentage of turnover. |
| Net profit margin is profit after tax as a percentage of turnover. |
| ON BEHALF OF THE BOARD: |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Report of the Directors |
| for the Period 1 April 2019 to 30 September 2020 |
| The directors present their report with the financial statements of the company for the period 1 April 2019 to 30 September 2020. |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the period under review was that of a hotel, leisure, tourism and events facilities. |
| DIVIDENDS |
| An interim dividend of £259,340 (2019 - £184,594) was paid for the period ended 30 September 2020. The directors recommend that no final dividend be paid. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report. |
| CORONAVIRUS OUTBREAK |
| In March 2020 the UK was impacted by the outbreak of the Coronavirus. In order to manage the spread of the virus the Government has imposed significant restrictions on the movement of people and the ability of businesses to continue to trade. |
| Due to the nature of the work carried out by the company, trading has been interrupted significantly due the restrictions imposed. The company has been able to take advantage of the deferment of payments of tax and government support. The directors are confident that the company will be able to manage cash-flow in such a way as to ensure that the company can continue trading. In addition, they believe that demand for the company's services will return to normal once the UK economy is returned to more normal trading conditions. |
| DISCLOSURE IN THE STRATEGIC REPORT |
| The company has chosen in accordance with section 414C(11) of Companies Act 2006 (Strategic Report and |
| Directors' Report) Regulations 2013 to set out in the company's Strategic Report information required by |
| schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Report of the Directors |
| for the Period 1 April 2019 to 30 September 2020 |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| School House Leisure Limited |
| Opinion |
| We have audited the financial statements of School House Leisure Limited (the 'company') for the period ended 30 September 2020 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the company's affairs as at 30 September 2020 and of its profit for the period then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
| - | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
| - | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| School House Leisure Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
| Report of the Independent Auditors to the Members of |
| School House Leisure Limited |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| · the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| · we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company; |
| · we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
| · identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| · making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| · considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations. |
| To address the risk of fraud through management bias and override of controls, we: |
| · performed analytical procedures to identify any unusual or unexpected relationships; |
| · tested journal entries to identify unusual transactions; and |
| · assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| · agreeing financial statement disclosures to underlying supporting documentation; |
| · reading the minutes of meetings of those charged with governance; |
| · enquiring of management as to actual and potential litigation and claims; and |
| · reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
| Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
| Report of the Independent Auditors to the Members of |
| School House Leisure Limited |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Statutory Auditors |
| Porthill Lodge |
| High Street |
| Wolstanton |
| Newcastle under Lyme |
| ST5 0EZ |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Income Statement |
| for the Period 1 April 2019 to 30 September 2020 |
| Period | Year Ended |
| 1.4.19 to 30.9.20 | 31.3.19 |
| Notes | £ | £ | £ | £ |
| TURNOVER | 3 |
| Cost of sales |
| GROSS PROFIT |
| Selling costs |
| Administrative expenses |
| 1,715,942 | 1,417,280 |
| (29,743 | ) | 556,314 |
| Other operating income |
| OPERATING PROFIT | 5 |
| Interest receivable and similar income |
| 357,860 | 560,091 |
| Interest payable and similar expenses | 6 |
| PROFIT BEFORE TAXATION |
| Tax on profit | 7 |
| PROFIT FOR THE FINANCIAL PERIOD |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Other Comprehensive Income |
| for the Period 1 April 2019 to 30 September 2020 |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| Notes | £ | £ |
| PROFIT FOR THE PERIOD |
| OTHER COMPREHENSIVE INCOME |
| Revaluation property uplift |
| Deferred tax on revaluation |
| Income tax relating to other comprehensive income |
| OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF INCOME TAX |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
| Prior year adjustment |
| TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Statement of Financial Position |
| 30 September 2020 |
| 2020 | 2019 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Tangible assets | 11 |
| CURRENT ASSETS |
| Stocks | 12 |
| Debtors | 13 |
| Cash at bank and in hand |
| CREDITORS |
| Amounts falling due within one year | 14 |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Revaluation reserve | 21 |
| Retained earnings | 21 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Statement of Changes in Equity |
| for the Period 1 April 2019 to 30 September 2020 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1 April 2018 |
| Prior year adjustment | - | - |
| As restated |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31 March 2019 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 30 September 2020 |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Statement of Cash Flows |
| for the Period 1 April 2019 to 30 September 2020 |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 |
| Tax paid | ( |
) |
| Net cash from operating activities |
| Cash flows from investing activities |
| Purchase of intangible fixed assets | ( |
) |
| Purchase of tangible fixed assets | ( |
) | ( |
) |
| Interest received |
| Net cash from investing activities | ( |
) | ( |
) |
| Cash flows from financing activities |
| New loans in year |
| Loan repayments in year | ( |
) |
| Capital repayments in year | ( |
) | ( |
) |
| Amount introduced by directors | 279,467 | 200,844 |
| Amount withdrawn by directors | (278,125 | ) | (200,844 | ) |
| Interest paid | ( |
) | ( |
) |
| Interest element of hire purchase | ( |
) | ( |
) |
| Equity dividends paid | ( |
) | ( |
) |
| Net cash from financing activities | ( |
) |
| Increase/(decrease) in cash and cash equivalents | ( |
) |
| Cash and cash equivalents at beginning of period |
2 |
(11,229 |
) |
103,289 |
| Cash and cash equivalents at end of period |
2 |
151,633 |
( |
) |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Statement of Cash Flows |
| for the Period 1 April 2019 to 30 September 2020 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| Profit before taxation |
| Depreciation charges |
| Loss on disposal of fixed assets |
| Government grants | ( |
) | ( |
) |
| Finance costs | 202,205 | 113,480 |
| Finance income | - | (417 | ) |
| 543,151 | 678,192 |
| Decrease/(increase) in stocks | ( |
) |
| Decrease/(increase) in trade and other debtors | ( |
) |
| Increase/(decrease) in trade and other creditors | ( |
) |
| Cash generated from operations |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Period ended 30 September 2020 |
| 30.9.20 | 1.4.19 |
| £ | £ |
| Cash and cash equivalents | 151,633 | 22,682 |
| Bank overdrafts | ( |
) |
| 151,633 | (11,229 | ) |
| Year ended 31 March 2019 |
| 31.3.19 | 1.4.18 |
| £ | £ |
| Cash and cash equivalents | 22,682 | 103,289 |
| Bank overdrafts | ( |
) |
| (11,229 | ) | 103,289 |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Statement of Cash Flows |
| for the Period 1 April 2019 to 30 September 2020 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.4.19 | Cash flow | At 30.9.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 22,682 | 128,951 | 151,633 |
| Bank overdrafts | (33,911 | ) | 33,911 | - |
| (11,229 | ) | 151,633 |
| Debt |
| Finance leases | (63,270 | ) | 48,645 | (14,625 | ) |
| Debts falling due within 1 year | (85,000 | ) | 49,164 | (35,836 | ) |
| Debts falling due after 1 year | (4,332,857 | ) | 11,168 | (4,321,689 | ) |
| (4,481,127 | ) | 108,977 | (4,372,150 | ) |
| Total | (4,492,356 | ) | 271,839 | (4,220,517 | ) |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements |
| for the Period 1 April 2019 to 30 September 2020 |
| 1. | STATUTORY INFORMATION |
| School House Leisure Limited is a |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements cover the company as an individual entity and are presented in Pounds Sterling (£) being the functional currency. |
| The financial statements have been prepared on a going concern basis on the assumption that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have made this assessment with regard to the company’s current and expected performance. |
| Significant judgements and estimates |
| 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. |
| The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
| Estimated useful lives and residual values of fixed assets |
| Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other companies operating in the sector and actual asset lives and residual values, as evidenced by disposals during current and prior accounting periods. |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, after discounts, returns and rebates, excluding value added tax and other sales taxes. |
| Rendering of services |
| Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract and when all of the following conditions are satisfied: |
| - | the amount of turnover can be measured reliably; |
| - | it is probable that the company will received the consideration due under the contract; |
| - | the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
| - | the costs incurred and the costs to complete the contract can be measured reliably. |
| For venue income, turnover is recognised when this is provided. Where payments are received from customers in advance of services being provided, the amounts are recorded as Deferred Income and included as part of Creditors due within one year. Revenue relating to gift cards is deferred until such a time as the gift card has been redeemed. |
| Sale of goods |
| Turnover from the sale of goods is recognised when all the following conditions are satisfied: |
| - the company has transferred to the buyer the significant risks and rewards of ownership of the goods; |
| - the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
| - the amount of turnover can be measured reliably; |
| - it is probable that the economic benefits associated with the transaction will flow to the company; and |
| - the costs incurred or to be incurred in respect of the transition can be measured reliably. |
| Usually, turnover from the sale of goods is recognised when the goods are delivered and legal title has passed. |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Computer equipment | - |
| Buildings are not depreciated on the basis that the residual value of the property is so high that any depreciation is unlikely to be material. The buildings are maintained and enhanced to a very high standard as this is a crucial part of the business. It is determined that were the property to be considered for sale at the end of its useful economic life that the selling price would exceed its carrying value. |
| Government grants |
| Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised 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. |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Financial instruments |
| Basic financial assets and liabilities are initially measured at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future cash flows discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
| 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. |
| The company recognises financial instruments when it becomes party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The company's accounting policies in respect of financial instruments transaction are explained below: |
| Financial assets |
| The company classifies all of its financial assets as loans and receivables. Loans and receivables are non-derivative financial assets or determinable payments that are not quoted in an active market. They are initially recognised at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment. |
| Financial liabilities |
| The company classifies all of its financial liabilities at amortised cost. Financial liabilities at amortised cost are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensure that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried into the balance sheet. |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current or deferred taxation assets and liabilities are not discounted. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| 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 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. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Hire purchase and leasing commitments |
| Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
| The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the company. |
| An analysis of turnover by class of business is given below: |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| 4. | EMPLOYEES AND DIRECTORS |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 4. | EMPLOYEES AND DIRECTORS - continued |
| The average number of employees during the period was as follows: |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| Directors | 3 | 3 |
| Staff | 102 | 119 |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| The number of directors to whom retirement benefits were accruing was as follows: |
| Money purchase schemes |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging: |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Depreciation - assets on hire purchase contracts |
| Loss on disposal of fixed assets |
| Patents and licences amortisation |
| Auditors' remuneration |
| Auditors' remuneration for non audit work |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| Bank loan interest |
| Hire purchase interest |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the period was as follows: |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| UK corporation tax has been charged at 19% . |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes | ( |
) |
| Income not taxable for tax purposes | ( |
) | ( |
) |
| Capital allowances in excess of depreciation | ( |
) | ( |
) |
| Deferred tax | 32,521 | (29,423 | ) |
| Total tax charge | 55,524 | 11,827 |
| Tax effects relating to effects of other comprehensive income |
| There were no tax effects for the period ended 30 September 2020. |
| 2019 |
| Gross | Tax | Net |
| £ | £ | £ |
| Revaluation property uplift |
| Deferred tax on revaluation | - | 5,785 |
| 5,785 | - | 5,785 |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 8. | DIVIDENDS |
| Period |
| 1.4.19 |
| to | Year Ended |
| 30.9.20 | 31.3.19 |
| £ | £ |
| Ordinary shares of £1 each |
| Interim |
| 9. | GOVERNMENT GRANTS |
| The grants received in the period represent £382,563 received from the the UK Government as part of the Job Retention Scheme and £5,040 received from DEFRA. |
| 10. | INTANGIBLE FIXED ASSETS |
| Patents |
| and |
| licences |
| £ |
| COST |
| At 1 April 2019 |
| and 30 September 2020 |
| AMORTISATION |
| At 1 April 2019 |
| Amortisation for period |
| At 30 September 2020 |
| NET BOOK VALUE |
| At 30 September 2020 |
| At 31 March 2019 |
| 11. | TANGIBLE FIXED ASSETS |
| Fixtures |
| Freehold | Plant and | and | Computer |
| property | machinery | fittings | equipment | Totals |
| £ | £ | £ | £ | £ |
| COST OR VALUATION |
| At 1 April 2019 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
| At 30 September 2020 |
| DEPRECIATION |
| At 1 April 2019 |
| Charge for period |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
| At 30 September 2020 |
| NET BOOK VALUE |
| At 30 September 2020 |
| At 31 March 2019 |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 11. | TANGIBLE FIXED ASSETS - continued |
| Cost or valuation at 30 September 2020 is represented by: |
| Fixtures |
| Freehold | Plant and | and | Computer |
| property | machinery | fittings | equipment | Totals |
| £ | £ | £ | £ | £ |
| Valuation in 2007 | 1,766,220 | - | - | - | 1,766,220 |
| Valuation in 2012 | (593,021 | ) | - | - | - | (593,021 | ) |
| Valuation in 2015 | 833,808 | - | - | - | 833,808 |
| Valuation in 2016 | 46,359 | - | - | - | 46,359 |
| Valuation in 2018 | 172,131 | - | - | - | 172,131 |
| Cost | 7,623,807 | 783,883 | 858,569 | 298,951 | 9,565,210 |
| 9,849,304 | 783,883 | 858,569 | 298,951 | 11,790,707 |
| If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
| 2020 | 2019 |
| £ | £ |
| Cost | 7,623,807 | 7,571,452 |
| Freehold land and buildings were valued on an open market basis on 12 April 2018 by Christie and |
| Co. The directors have considered the value in use and are happy that the valuation is not overstated. |
| Total NBV of assets held under hire purchase contracts are as follows - 2020: £88,794 (2019: £523,981) |
| 12. | STOCKS |
| 2020 | 2019 |
| £ | £ |
| Goods for resale & consumables |
| 13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Trade debtors |
| Other debtors |
| Directors' current accounts | - | 1 |
| Prepayments and accrued income |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Bank loans and overdrafts (see note 16) |
| Hire purchase contracts (see note 17) |
| Trade creditors |
| Tax |
| Social security and other taxes |
| VAT | 152,404 | 85,076 |
| Other creditors |
| Directors' current accounts | 1,342 | 1 |
| Accruals and deferred income |
| Deferred government grants |
| 15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 2020 | 2019 |
| £ | £ |
| Bank loans (see note 16) |
| Hire purchase contracts (see note 17) |
| Deferred government grants |
| 16. | LOANS |
| An analysis of the maturity of loans is given below: |
| 2020 | 2019 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Bank overdrafts |
| Bank loans |
| Amounts falling due between one and two years: |
| Bank loans - 1-2 years |
| Amounts falling due between two and five years: |
| Bank loans - 2-5 years |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans - more than 5 years |
| by instalments | 4,167,710 | - |
| 4,167,710 | - |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 17. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Hire purchase contracts |
| 2020 | 2019 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| Non-cancellable | operating leases |
| 2020 | 2019 |
| £ | £ |
| Within one year |
| Between one and five years |
| 18. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| 2020 | 2019 |
| £ | £ |
| Bank overdraft |
| Bank loans |
| Hire purchase contracts | 14,625 | 63,270 |
| The borrowings are secured by: |
| • A mortgage over the property known as Moddershall Oaks Health Spa, School House Farm, Stone, |
| ST15 8TG; |
| • A first legal charge over life policies of the directors; |
| • A fixed and floating charge over all property and assets of the undertaking; and |
| • Hire purchase contracts are secured on the assets to which they relate. |
| 19. | PROVISIONS FOR LIABILITIES |
| 2020 | 2019 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Revaluation | 51,215 | 51,215 |
| 311,613 | 279,092 |
| School House Leisure Limited (Registered number: 03679011) |
| Trading as Moddershall Oaks |
| Notes to the Financial Statements - continued |
| for the Period 1 April 2019 to 30 September 2020 |
| 19. | PROVISIONS FOR LIABILITIES - continued |
| Deferred |
| tax |
| £ |
| Balance at 1 April 2019 |
| Charged to income statement | 32,521 |
| Balance at 30 September 2020 |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2020 | 2019 |
| value: | £ | £ |
| Ordinary | £1 | 970,000 | 970,000 |
| 21. | RESERVES |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1 April 2019 | 3,364,661 |
| Profit for the period |
| Dividends | ( |
) | ( |
) |
| At 30 September 2020 | 3,205,452 |
| Retained earnings records retained profits and accumulated losses. |
| Revaluation reserve records undistributed gains relating to the freehold property fair value adjustments and related deferred tax. |
| 22. | RELATED PARTY DISCLOSURES |
| During the period, a total of key management personnel compensation of £ |
| 23. | ULTIMATE CONTROLLING PARTY |
| The controlling party is P G Holland. |
| 24. | PENSION COMMITMENTS |
| The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £43,609 (2019 - £20,493). Contributions totalling £5,536 (2019 - £4,156) were payable to the fund at the balance sheet date and are included in creditors. |