Barnby C H Limited - Limited company accounts 20.1

REGISTERED NUMBER: 07933646 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2021

FOR

BARNBY C H LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTOR:

A P Levack

REGISTERED OFFICE:

Ye Old Bell Gt North Road

Barnby Moor

Retford

DN22 8SQ

REGISTERED NUMBER:

07933646 (England and Wales)

AUDITORS:

D & J Randles Limited

Chartered Accountants

Statutory Auditors

203 Askern Road

Bentley

Doncaster

South Yorkshire

DN5 0JR

The director presents his strategic report of the company and the group for the year ended 30 September 2021.

The group's principal activities for the period under review were those of operators of residential care homes and hoteliers.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business and its position at the period end. Our review is consistent with the size and straightforward nature of our business and is written in the context of the risks and uncertainties we face.

The Group comprises 3 trading companies:

Dukeries Healthcare Ltd, which operates 4 Care Homes

Coaching Inns (North) Ltd, which operates a 4 star hotel, Ye Olde Bell Ltd at Barnby Moor near Retford

Spa at Ye Olde Bell Ltd, a company formed to operate a recently constructed spa facility adjacent to the hotel.

The Results for the Group are presented for the year ended 30 September 2021 with comparatives for the year ended 30 September 2020.

The turnover of the group amounts to £13,364,102 for the year compared to £13,482,245 for the previous year. This represents a decrease of just 0.9% compared to a decrease of 6.3% in 2020.

Profit before taxation for the year amounts to £2,485,540 compared to £1,370,325 for the previous year, an increase of 81.4% (2020 - decrease of 30.7%).

The increase in profitability has been due to the improvement in the performance of the Hotel and Spa following the end of Covid lockdown and also the increase in value of the group's investments.

The net profit for the year has resulted in the group's net assets increasing from £10,308,990 in 2020 to £12,338,246 at the year end. The continuing increase in net assets is considered to be a very satisfactory state of affairs.

PRINCIPAL RISKS AND UNCERTAINTIES

Continuing economic pressure in the UK is a risk for the group, especially with the uncertainties arising from Brexit. This risk is managed by providing added value services to customers (hence the decision to open a Spa) and having fast response times and by maintaining strong relationships with customers.

The group monitors its trading operations very carefully so as to pick up any potential problems at an early stage.

During the year under review and subsequently, the group, like all businesses, has been impacted by the Coronavirus pandemic. However, the company's management has put in place all necessary steps to deal with the situation and the group is continuing to trade profitably.

EMPLOYEE INVOLVEMENT

Within the grounds of commercial confidentiality, information is disseminated to all levels of staff about matters that affect the group and are of interest to them as employees.

DISABLED EMPLOYEES

The group gives equal opportunity to the employment of disabled persons where applicable.

It is the policy of the group that training, career development and promotion opportunities should be available to all employees.

ON BEHALF OF THE BOARD:

A P Levack - Director

17 February 2022

The director presents his report with the financial statements of the company and the group for the year ended 30 September 2021.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of operators of residential care homes and hoteliers.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2021.

DIRECTOR

A P Levack was the sole director during the year under review.

His beneficial interest in the issued share capital of the company was as follows:

30.9.21

1.10.20

Ordinary £1 shares

3

3

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

D & J Randles Limited will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A P Levack - Director

17 February 2022

Opinion

We have audited the financial statements of Barnby C H Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 September 2021 and of the group's profit for the year 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 group 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

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 this gives rise to a material misstatement in the financial statements themselves. 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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

- we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the Officers and other management (as required by auditing standards).

- we had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items.

- with the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the Officers.

- we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

- we addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

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.

D F Randles FCA (Senior Statutory Auditor)

for and on behalf of D & J Randles Limited

Chartered Accountants

Statutory Auditors

203 Askern Road

Bentley

Doncaster

South Yorkshire

DN5 0JR

17 February 2022

TURNOVER

13,364,102

13,482,245

Cost of sales

(8,260,173

)

(8,885,853

)

GROSS PROFIT

5,103,929

4,596,392

Administrative expenses

(4,169,201

)

(3,893,957

)

934,728

702,435

Other operating income

1,242,116

748,138

OPERATING PROFIT

4

2,176,844

1,450,573

Interest receivable and similar income

98

4,051

2,176,942

1,454,624

Gain/loss on revaluation of assets

308,598

(83,948

)

2,485,540

1,370,676

Interest payable and similar expenses

5

-

(351

)

PROFIT BEFORE TAXATION

2,485,540

1,370,325

Tax on profit

6

(456,284

)

(270,401

)

PROFIT FOR THE FINANCIAL YEAR

2,029,256

1,099,924

Profit attributable to:

Owners of the parent

2,029,256

1,099,924

PROFIT FOR THE YEAR

2,029,256

1,099,924

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,029,256

1,099,924

Total comprehensive income attributable to:

Owners of the parent

2,029,256

1,099,924

FIXED ASSETS

Tangible assets

8

2,800,732

3,000,136

Investments

9

6,709,655

3,100,057

9,510,387

6,100,193

CURRENT ASSETS

Stocks

10

79,439

68,339

Debtors

11

2,869,586

2,822,774

Cash at bank and in hand

3,307,117

4,617,348

6,256,142

7,508,461

CREDITORS

Amounts falling due within one year

12

(3,114,920

)

(3,044,221

)

NET CURRENT ASSETS

3,141,222

4,464,240

TOTAL ASSETS LESS CURRENT LIABILITIES

12,651,609

10,564,433

PROVISIONS FOR LIABILITIES

13

(313,363

)

(255,443

)

NET ASSETS

12,338,246

10,308,990

CAPITAL AND RESERVES

Called up share capital

14

3

3

Retained earnings

15

12,338,243

10,308,987

SHAREHOLDERS' FUNDS

12,338,246

10,308,990

The financial statements were approved by the director and authorised for issue on 17 February 2022 and were signed by:

A P Levack - Director

FIXED ASSETS

Tangible assets

8

182,194

242,924

Investments

9

6,205,781

3,100,160

6,387,975

3,343,084

CURRENT ASSETS

Debtors

11

3,059,402

3,059,402

Cash at bank

68,304

196,412

3,127,706

3,255,814

CREDITORS

Amounts falling due within one year

12

(4,979,234

)

(2,382,168

)

NET CURRENT (LIABILITIES)/ASSETS

(1,851,528

)

873,646

TOTAL ASSETS LESS CURRENT LIABILITIES

4,536,447

4,216,730

PROVISIONS FOR LIABILITIES

13

(200,805

)

(146,582

)

NET ASSETS

4,335,642

4,070,148

CAPITAL AND RESERVES

Called up share capital

14

3

3

Retained earnings

15

4,335,639

4,070,145

SHAREHOLDERS' FUNDS

4,335,642

4,070,148

Company's profit/(loss) for the financial year

265,494

(65,740

)

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 17 February 2022 and were signed by:

A P Levack - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2019

3

9,209,063

9,209,066

Changes in equity

Total comprehensive income

-

1,099,924

1,099,924

Balance at 30 September 2020

3

10,308,987

10,308,990

Changes in equity

Total comprehensive income

-

2,029,256

2,029,256

Balance at 30 September 2021

3

12,338,243

12,338,246

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2019

3

4,135,885

4,135,888

Changes in equity

Total comprehensive income

-

(65,740

)

(65,740

)

Balance at 30 September 2020

3

4,070,145

4,070,148

Changes in equity

Total comprehensive income

-

265,494

265,494

Balance at 30 September 2021

3

4,335,639

4,335,642

Cash flows from operating activities

Cash generated from operations

1

2,393,624

2,253,463

Interest paid

-

(351

)

Tax paid

(325,707

)

(281,639

)

Net cash from operating activities

2,067,917

1,971,473

Cash flows from investing activities

Purchase of tangible fixed assets

(62,624

)

(10,447

)

Purchase of fixed asset investments

(3,301,000

)

-

Interest received

98

4,051

Net cash from investing activities

(3,363,526

)

(6,396

)

Cash flows from financing activities

Amount introduced by directors

-

29,905

Amount withdrawn by directors

(14,622

)

-

Net cash from financing activities

(14,622

)

29,905

(Decrease)/increase in cash and cash equivalents

(1,310,231

)

1,994,982

Cash and cash equivalents at beginning of year

2

4,617,348

2,622,366

Cash and cash equivalents at end of year

2

3,307,117

4,617,348

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.9.21

30.9.20

£

£

Profit before taxation

2,485,540

1,370,325

Depreciation charges

262,028

316,157

(Gain)/loss on revaluation of fixed assets

(308,598

)

83,948

Finance costs

-

351

Finance income

(98

)

(4,051

)

2,438,872

1,766,730

Increase in stocks

(11,100

)

(967

)

(Increase)/decrease in trade and other debtors

(46,812

)

42,830

Increase in trade and other creditors

12,664

444,870

Cash generated from operations

2,393,624

2,253,463

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2021

30.9.21

1.10.20

£

£

Cash and cash equivalents

3,307,117

4,617,348

Year ended 30 September 2020

30.9.20

1.10.19

£

£

Cash and cash equivalents

4,617,348

2,622,366

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.20

Cash flow

At 30.9.21

£

£

£

Net cash

Cash at bank and in hand

4,617,348

(1,310,231

)

3,307,117

4,617,348

(1,310,231

)

3,307,117

Total

4,617,348

(1,310,231

)

3,307,117

1.	STATUTORY INFORMATION

Barnby C H 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 General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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.

Long leasehold

-

2% on cost

Improvements to property

-

2% on cost

Plant and machinery

-

25% on reducing balance and 20% on reducing balance

Fixtures and fittings

-

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 Consolidated 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.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

30.9.21

30.9.20

£

£

Wages and salaries

7,380,346

7,597,247

Social security costs

490,498

482,041

Other pension costs

154,222

155,324

8,025,066

8,234,612

The average number of employees during the year was as follows:

30.9.21

30.9.20

Employees

503

519

30.9.21

30.9.20

£

£

Director's remuneration

288,276

287,754

Information regarding the highest paid director is as follows:

30.9.21

30.9.20

£

£

4.	OPERATING PROFIT

The operating profit is stated after charging:

30.9.21

30.9.20

£

£

Depreciation - owned assets

262,028

316,157

Auditors' remuneration

16,390

17,570

In previous year, payments have been made by the group to Dukeries Healthcare Limited Remuneration Trust which following assurance from the trustees' advisers have been treated as an allowable business expense for corporation tax purposes.

The trustee of the trust is Bay International, a company registered in Belize. The power of appointing and removing trustees is vested in the protector who is A P Levack who is a director of Dukeries Healthcare Limited. The trustees have the power to apply the income and capital of the trust for the benefit of the beneficiaries in such shares and in such manner as generally as the trustees in their absolute discretion think fit.

The following are excluded from being beneficiaries of the trust:

i) Dukeries Healthcare Limited

ii) Any person connected with Dukeries Healthcare Limited

iii) Any participator in Dukeries Healthcare Limited

iv) Any former, present or future employee of Dukeries Healthcare Limited

However, the trustees have the power to make loans to such excluded persons.

The beneficiaries of the trust are wives, husbands, widows, widowers, children, step children and remoter issue of a person who provides or has provided or may in future provide:

i) services or custom or products or finance to Dukeries Healthcare Limited

ii) finance to the trustees or any manager of the trust fund.

The trust fund is invested under the supervision and custodianship of companies nominated by the protector who is A P Levack who is a director of Dukeries Healthcare Limited.

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.9.21

30.9.20

£

£

Interest on overdue tax

-

351

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.9.21

30.9.20

£

£

Current tax:

UK corporation tax

398,364

299,295

Deferred tax

57,920

(28,894

)

Tax on profit

456,284

270,401