Damon's Motel Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 02542214 (England and Wales)

Financial Statements

for the Period

27 January 2020 to 31 January 2021

for

Damon's Motel Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

J E Foulston

S A Carey

REGISTERED OFFICE:

999 Doddington Road

Lincoln

Lincolnshire

LN6 3SE

REGISTERED NUMBER:

02542214 (England and Wales)

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

FIXED ASSETS

Tangible assets

4

1,362,959

1,547,953

CURRENT ASSETS

Stocks

996

1,011

Debtors

5

969,567

631,902

Cash at bank and in hand

3,385

459,900

973,948

1,092,813

CREDITORS

Amounts falling due within one year

6

39,047

91,380

NET CURRENT ASSETS

934,901

1,001,433

TOTAL ASSETS LESS CURRENT LIABILITIES

2,297,860

2,549,386

CREDITORS

Amounts falling due after more than one year

7

(2,550

)

(8,566

)

PROVISIONS FOR LIABILITIES

(46,562

)

(45,367

)

NET ASSETS

2,248,748

2,495,453

CAPITAL AND RESERVES

Called up share capital

8

2

2

Revaluation reserve

9

289,407

468,124

Retained earnings

1,959,339

2,027,327

SHAREHOLDERS' FUNDS

2,248,748

2,495,453

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 8 December 2021 and were signed on its behalf by:

S A Carey - Director

1.	STATUTORY INFORMATION

Damon's Motel 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.

The financial statements have been prepared for a period of 12 months and 5 days to 31 January 2021, whereas the comparative period was prepared for the 15 month period ended 26 January 2020.

The Covid-19 pandemic has continued to impact the hospitality industry throughout 2021, and the Company has endured difficult trading conditions and operational and financial challenges as a result. Consequently, there is material uncertainty regarding the ability of the entity to continue as a going concern for the next 12 months from the date of this report.

However, after reviewing the company's forecasts and projections, and based on confirmation of the ongoing financial and operational support from the shareholders, the directors are satisfied that the company has adequate resources to continue to operate for at least the next 12 months. 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 operating a motel during the period, exclusive of Value Added Tax and discounts.

Turnover is recognised at the point of payment.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following basis:

Freehold property

-

2% straight line

Plant & machinery

-

10 % reducing balance

Fixtures & fittings

-

10% reducing balance

Land is not depreciated.

Government grants

Grants relating to the Coronavirus Job Retention Scheme are recognised in full in the period in which the associated salary, national insurance and pension costs were incurred.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost includes all direct costs.

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 balance sheet date.

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 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.

Pensions

The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to the fund in respect of the period.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 21 (2020 - 23 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 27 January 2020

1,512,424

327,837

769,375

1,620

2,611,256

Additions

-

-

42,399

-

42,399

Revaluations

(412,424

)

-

-

-

(412,424

)

At 31 January 2021

1,100,000

327,837

811,774

1,620

2,241,231

DEPRECIATION

At 27 January 2020

223,707

255,064

584,034

498

1,063,303

Charge for period

10,000

10,195

28,107

374

48,676

Revaluation adjustments

(233,707

)

-

-

-

(233,707

)

At 31 January 2021

-

265,259

612,141

872

878,272

NET BOOK VALUE

At 31 January 2021

1,100,000

62,578

199,633

748

1,362,959

At 26 January 2020

1,288,717

72,773

185,341

1,122

1,547,953

Included in cost or valuation of land and buildings is freehold land of £ 181,827 (2020 - £ 250,000 ) which is not depreciated.

Analysis of the cost of freehold property using the deemed cost exemption:

2021

2020

£

£

Historical cost

1,042,424

1,042,424

Valuation

57,576

470,000

Deemed cost

1,100,000

1,512,424

In 2021 the the directors deemed it appropriate to reduce the holding value of the freehold property based on current market trends.

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

3,823

7,938

Amounts owed by group undertakings

958,805

604,615

Other debtors

6,939

19,349

969,567

631,902

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade creditors

11,938

29,528

Taxation and social security

18,593

35,297

Other creditors

8,516

26,555

39,047

91,380

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Amounts owed to group undertakings

2,550

2,550

Taxation and social security

-

6,016

2,550

8,566

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

2

Ordinary

£1

2

2

9.

RESERVES

Revaluation

reserve

£

At 27 January 2020

468,124

Revaluation

(178,717

)

At 31 January 2021

289,407

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

The Report of the Auditors was unqualified.

We draw attention to note 2 of the accounting policies - Basis of preparing the financial statements, which explains the material uncertainty regarding going concern.

The material uncertainty is adequately explained and disclosed in the financial statements.

Our opinion is not modified in respect of this matter.

Matthew Chadwick BA (Hons) ACA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

11.	CONTINGENT LIABILITIES

The company is party to a bank cross guarantee and debenture with fellow subsidiary undertakings Damon's Restaurants (UK) Limited and Damon's Developments Limited, together with its parent undertaking, Damon's (Holdings) Limited. The total bank borrowings of these entities to which the guarantee refers as at 31 January 2021 amounted to £358,458 (2020: £Nil).

12.	RELATED PARTY TRANSACTIONS

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

13.	ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The ultimate parent undertaking is Damon's (Holdings) Limited.

The parent undertaking of the largest and smallest group for which consolidated accounts are prepared is Damons (Holdings) Limited. Consolidated accounts are available from 999 Doddington Road, Lincoln, LN6 3SE.

The ultimate controlling party is J E Foulston.