Fonab Castle Hotel Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 08275224 (England and Wales)

REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020

FOR

FONAB CASTLE HOTEL LTD

Page

Company Information

1

Report of the Director

2

Income Statement

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTOR:

Mrs J E Clark

REGISTERED OFFICE:

2nd Floor, Boulton House

17-21 Chorlton Street

Manchester

M1 3HY

REGISTERED NUMBER:

08275224 (England and Wales)

ACCOUNTANTS:

Connaughton & Co

2nd Floor, Boulton House

17-21 Chorlton Street

Manchester

M1 3HY

The director presents her report with the financial statements of the company for the year ended 30 June 2020.

DIRECTOR

Mrs J E Clark held office during the whole of the period from 1 July 2019 to the date of this report.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mrs J E Clark - Director

25 June 2021

TURNOVER

3,471,622

4,787,257

Cost of sales

2,408,675

2,477,516

GROSS PROFIT

1,062,947

2,309,741

Administrative expenses

1,728,957

1,431,039

(666,010

)

878,702

Other operating income

407,667

76,415

OPERATING (LOSS)/PROFIT

4

(258,343

)

955,117

Interest receivable and similar income

661

363

(257,682

)

955,480

Interest payable and similar expenses

43,242

56,207

(LOSS)/PROFIT BEFORE TAXATION

(300,924

)

899,273

Tax on (loss)/profit

5

(47,623

)

182,275

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(253,301

)

716,998

FIXED ASSETS

Tangible assets

6

1,940,542

1,770,236

CURRENT ASSETS

Stocks

7

44,394

44,516

Debtors

8

155,260

445,960

Cash at bank and in hand

1,143,639

918,856

1,343,293

1,409,332

CREDITORS

Amounts falling due within one year

9

709,376

1,139,482

NET CURRENT ASSETS

633,917

269,850

TOTAL ASSETS LESS CURRENT LIABILITIES

2,574,459

2,040,086

CREDITORS

Amounts falling due after more than one year

10

(1,398,712

)

(606,923

)

PROVISIONS FOR LIABILITIES

13

(61,199

)

(24,314

)

NET ASSETS

1,114,548

1,408,849

CAPITAL AND RESERVES

Called up share capital

14

1

1

Retained earnings

15

1,114,547

1,408,848

SHAREHOLDERS' FUNDS

1,114,548

1,408,849

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2020 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges her responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

The financial statements were approved by the director and authorised for issue on 25 June 2021 and were signed by:

Mrs J E Clark - Director

1.	STATUTORY INFORMATION

Fonab Castle Hotel Ltd 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Improvements to property

-

in accordance with the property

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

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 for the year 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 year 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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 83 (2019 - 87 ) .

4.	OPERATING (LOSS)/PROFIT

The operating loss (2019 - operating profit) is stated after charging:

30.6.20

30.6.19

£

£

Depreciation - owned assets

94,969

81,036

5.

TAXATION

Analysis of the tax (credit)/charge

The tax (credit)/charge on the loss for the year was as follows:

30.6.20

30.6.19

£

£

Current tax:

UK corporation tax

(84,508

)

174,844

Deferred tax

36,885

7,431

Tax on (loss)/profit

(47,623

)

182,275

6.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Land and

to

and

buildings

property

fittings

£

£

£

COST

At 1 July 2019

210,616

1,382,149

99,235

Additions

42,628

270,507

17,800

At 30 June 2020

253,244

1,652,656

117,035

DEPRECIATION

At 1 July 2019

-

140,108

58,546

Charge for year

-

82,633

8,773

At 30 June 2020

-

222,741

67,319

NET BOOK VALUE

At 30 June 2020

253,244

1,429,915

49,716

At 30 June 2019

210,616

1,242,041

40,689

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 July 2019

367,813

45,069

2,104,882

Additions

-

-

330,935

At 30 June 2020

367,813

45,069

2,435,817

DEPRECIATION

At 1 July 2019

100,589

35,403

334,646

Charge for year

66,806

2,417

160,629

At 30 June 2020

167,395

37,820

495,275

NET BOOK VALUE

At 30 June 2020

200,418

7,249

1,940,542

At 30 June 2019

267,224

9,666

1,770,236

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

Motor

vehicles

£

COST

At 1 July 2019

and 30 June 2020

357,638

DEPRECIATION

At 1 July 2019

94,997

Charge for year

65,660

At 30 June 2020

160,657

NET BOOK VALUE

At 30 June 2020

196,981

At 30 June 2019

262,641

7.

STOCKS

30.6.20

30.6.19

£

£

Stocks

44,394

44,516

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

£

£

Other debtors

1,788

1,788

Directors' current accounts

-

345,911

VAT

27,643

-

Prepayments

125,829

98,261

155,260

445,960

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.20

30.6.19

£

£

Bank loans and overdrafts (see note 11)

181,357

136,309

Hire purchase contracts

210,068

236,675

Trade creditors

108,009

215,520

Tax

75,336

174,844

Social security and other taxes

24,462

38,937

VAT

-

197,891

Other creditors

99,075

138,956

Directors' current accounts

889

-

Accrued expenses

10,180

350

709,376

1,139,482

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.6.20

30.6.19

£

£

Bank loans (see note 11)

1,398,712

606,923

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

174,167

-

11.

LOANS

An analysis of the maturity of loans is given below:

30.6.20

30.6.19

£

£

Amounts falling due within one year or on demand:

Bank loans

181,357

136,309

Amounts falling due between one and two years:

Bank loans - 1-2 years

338,432

142,378

Amounts falling due between two and five years:

Bank loans - 2-5 years

886,113

464,545

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

174,167

-

12.	SECURED DEBTS

The following secured debts are included within creditors:

30.6.20

30.6.19

£

£

Bank loans

1,580,069

743,232

A fixed and floating charge is held by Lloyds Bank plc over the assets of the company.

13.	PROVISIONS FOR LIABILITIES

30.6.20

30.6.19

£

£

Deferred tax

61,199

24,314

Deferred

tax

£

Balance at 1 July 2019

24,314

Accelerated capital allowances

36,885

Balance at 30 June 2020

61,199

14.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.6.20

30.6.19

value:

£

£

1

Ordinary

£1

1

1

15.

RESERVES

Retained

earnings

£

At 1 July 2019

1,408,848

Deficit for the year

(253,301

)

Dividends

(41,000

)

At 30 June 2020

1,114,547

16.	RELATED PARTY DISCLOSURES