Langrish House Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03494266 (England and Wales)

LANGRISH HOUSE LIMITED

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Accountants' Report

11

DIRECTORS:

Mr N E C Talbot-Ponsonby

Mrs R H Talbot-Ponsonby

SECRETARY:

Mrs R H Talbot-Ponsonby

REGISTERED OFFICE:

Langrish House

Langrish

Petersfield

Hampshire

GU32 1RN

REGISTERED NUMBER:

03494266 (England and Wales)

ACCOUNTANTS:

Cox Costello & Horne

Chartered Accountants and Tax Advisors

26 Main Avenue

Moor Park

HA6 2HJ

FIXED ASSETS

Tangible assets

4

2,378,963

2,392,290

Investment property

5

500,000

500,000

2,878,963

2,892,290

CURRENT ASSETS

Stocks

4,500

4,500

Debtors

6

285,060

322,536

Cash at bank and in hand

122,658

91,926

412,218

418,962

CREDITORS

Amounts falling due within one year

7

132,003

166,264

NET CURRENT ASSETS

280,215

252,698

TOTAL ASSETS LESS CURRENT LIABILITIES

3,159,178

3,144,988

CREDITORS

Amounts falling due after more than one year

8

(1,551,141

)

(1,527,667

)

PROVISIONS FOR LIABILITIES

10

(175,051

)

(174,928

)

NET ASSETS

1,432,986

1,442,393

CAPITAL AND RESERVES

Called up share capital

250,000

250,000

Revaluation reserve

11

1,253,470

1,253,470

Fair value reserve

11

40,000

40,000

Retained earnings

11

(110,484

)

(101,077

)

SHAREHOLDERS' FUNDS

1,432,986

1,442,393

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 14 December 2021 and were signed on its behalf by:

Mr N E C Talbot-Ponsonby - Director

1.	STATUTORY INFORMATION

Langrish 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.

Going concern

The company meets its day-to-day working capital requirements through its bank and loan facilities. The company's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future; taken to be 12 months from signing the financial statements. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Turnover

Turnover comprises revenue recognised by the company in respect of sale of goods and provision of services supplied. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates and other sales taxes, such as value-added tax. Revenue from room sales and other guest services is recognised when rooms are occupied and as services are provided.

The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue 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 when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the company will receive 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.

Tangible fixed assets

Tangible fixed assets are stated at historical cost, with the exception of freehold land and buildings which are revalued, 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. The freehold land and buildings have been revalued as a whole and hence the building element is indistinguishable from the land element. The building element of this valuation is determined by the directors.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

-

Freehold land

- not provided

-

Freehold buildings

- upto 50 years

-

Freehold improvements

- upto 50 years

-

Plant and machinery

- 25% on cost

-

Fixtures and fittings

- 25% on cost

-

Computer equipment

- 25% on cost

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.

Government grants

Grants are recognised only when there is reasonable assurance that the company will comply with the conditions attached to them and that the grants will be received. Grants that are receivable as compensation for expenses already incurred are recognised in profit or loss in the period in which they become receivable.

Investment property

Investment property consists of commercial property held for long-term rental yields or for capital appreciation or both, and not held for the social benefit or for use in the business. Investment property is measured at cost, including related transaction costs, on initial recognition and subsequently at fair value as at the year end, with changes in fair value recognised in profit and loss. Subsequent expenditure is capitalised to the asset's carrying value only when it is probable that future economic benefits associated with the expenditure will flow to the company. All other repairs and maintenance costs are expensed when incurred. Fair value is determined by either independent professional third party valuers or company officers, such as the directors. Depreciation is not provided in respect of the investment properties. Fair value of investment property reflects, among other things, rental income from current leases and other assumptions market participants would make when pricing the property under current market conditions.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first -out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their location and condition. At each reporting date, inventories are assessed for impairment. If inventory 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 and loss.

Financial instruments

The company only enters into basic financial instruments 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 non-puttable ordinary shares.

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.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

a) Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

b) Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Cash at bank and in hand

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term 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.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a change 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.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and

-

any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Pension costs

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension costs represent contributions payable under the scheme by the company. The company has no liability under the scheme other than for the payment of those contributions.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 4 (2020 - 8 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 April 2020

2,365,000

342,610

2,707,610

Additions

-

998

998

At 31 March 2021

2,365,000

343,608

2,708,608

DEPRECIATION

At 1 April 2020

29,200

286,120

315,320

Charge for year

7,300

7,025

14,325

At 31 March 2021

36,500

293,145

329,645

NET BOOK VALUE

At 31 March 2021

2,328,500

50,463

2,378,963

At 31 March 2020

2,335,800

56,490

2,392,290

Included in cost or valuation of land and buildings is freehold land of £ 2,000,000 (2020 - £ 2,000,000 ) which is not depreciated.

Cost or valuation at 31 March 2021 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 1999

277,029

-

277,029

Valuation in 2010

1,217,808

-

1,217,808

Valuation in 2016

3,303

-

3,303

Cost

866,860

343,608

1,210,468

2,365,000

343,608

2,708,608

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

31.3.21

31.3.20

£

£

Cost

866,860

866,860

Aggregate depreciation

167,900

160,600

Value of land in freehold land and buildings

501,860

501,860

Freehold land and buildings were valued on an open market value basis on 31 March 2021 by the directors .

At the reporting date, the directors consider the carrying value of the freehold property to be line open with the market expectation.

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 April 2020

and 31 March 2021

500,000

NET BOOK VALUE

At 31 March 2021

500,000

At 31 March 2020

500,000

Fair value at 31 March 2021 is represented by:

£

Valuation in 2010

40,000

Cost

460,000

500,000

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

31.3.21

31.3.20

£

£

Cost

460,000

460,000

Aggregate depreciation

(128,800

)

(119,600

)

Investment property was valued on an open market basis on 31 March 2021 by the directors .

At the reporting date, the directors consider the carrying value of the investment property to be line open with the market expectation.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.21

31.3.20

£

£

Trade debtors

12,554

22,714

Finance leases

1,060

1,831

Other debtors

271,446

297,991

285,060

322,536

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.21

31.3.20

£

£

Bank loan

4,167

-

Finance leases

2,359

5,203

Trade creditors

18,706

38,035

Taxation and social security

8,073

8,416

Other creditors

98,698

114,610

132,003

166,264

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.21

31.3.20

£

£

Bank loan

45,833

-

Finance leases

5,308

7,667

Other creditors

1,500,000

1,520,000

1,551,141

1,527,667

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Other loan more 5 years

1,500,000

1,500,000

Repayable by instalments

Bank loan

5,833

-

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.21

31.3.20

£

£

Other loans

1,500,000

1,500,000

Finance leases

7,667

12,870

Other creditors

20,000

40,000

1,527,667

1,552,870

Finance leases are secured over the assets concerned.

The other loan is secured by way of a registered legal charge over the freehold property and all other assets of the company. The legal charge additionally contains fixed & floating charges and a negative pledge.

Other creditors are secured over the assets concerned.

10.	PROVISIONS FOR LIABILITIES

31.3.21

31.3.20

£

£

Deferred tax

175,051

174,928

Deferred

tax

£

Balance at 1 April 2020

174,928

Freehold property revaluation

Depreciation over allowances

123

Balance at 31 March 2021

175,051

11.

RESERVES

Fair

Retained

Revaluation

value

earnings

reserve

reserve

Totals

£

£

£

£

At 1 April 2020

(101,077

)

1,253,470

40,000

1,192,393

Deficit for the year

(9,407

)

(9,407

)

At 31 March 2021

(110,484

)

1,253,470

40,000

1,182,986

The revaluation reserve comprises the movement on the revaluation of freehold property and deferred tax recognised thereon.

The fair value reserve comprises the movement on the fair value of investment property and deferred tax recognised thereon.

12.	ULTIMATE CONTROLLING PARTY

At the reporting date, in the opinion of the directors, there is no individual controlling party. There has been no change between the reporting date and date of approval of the financial statements.

13.	IMPACT OF THE COVID 19 PANDEMIC

The COVID-19 pandemic existed at the balance sheet date, although the scale of the pandemic and associated government policy response only began to become clear in the months following the company's financial year. The directors have considered the effect of the COVID-19 pandemic on the company's activities. This event is likely to cause significant disruption to the company's activities, but at the date of the approval of these financial statements, the extent and quantum of the disruptions remains uncertain.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Langrish House Limited for the year ended 31 March 2021 which comprise the Profit and Loss account, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Langrish House Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Langrish House Limited and state those matters that we have agreed to state to the Board of Directors of Langrish House Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Langrish House Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Langrish House Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Langrish House Limited. You consider that Langrish House Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Langrish House Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Cox Costello & Horne

Chartered Accountants and Tax Advisors

26 Main Avenue

Moor Park

HA6 2HJ

14 December 2021