Sutton Veny House Limited - Period Ending 2022-03-31

Sutton Veny House Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

Sutton Veny House Limited

Company Information

Director

M C Bila

Registered office

Mendip Court Bath Road Wells Somerset BA5 3DG

Bankers

Barclays Bank PLC 4th Floor Bridgewater House Counterslip Finzels Reach Bristol BS1 6BX

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Sutton Veny House Limited

(Registration number: 04653466)
Balance Sheet as at 31 March 2022

	Note	2022  £	2021  £
Fixed assets
Intangible assets	4	112,500	135,000
Tangible assets	5	1,913,432	1,937,180
		2,025,932	2,072,180
Current assets
Stocks	6	2,725	2,725
Debtors: Amounts falling due within one year	7	342,303	243,090
Debtors: Amounts falling due after more than one year	7	244,122	-
Cash at bank and in hand		259,932	230,585
		849,082	476,400
Creditors: Amounts falling due within one year	8	(798,191)	(867,973)
Net current assets/(liabilities)		50,891	(391,573)
Total assets less current liabilities		2,076,823	1,680,607
Creditors: Amounts falling due after more than one year	8	-	(117,213)
Deferred tax liabilities		(2,513)	(2,887)
Net assets		2,074,310	1,560,507
Capital and reserves
Called up share capital		8,000	8,000
Share premium reserve		296,000	296,000
Profit and loss account		1,770,310	1,256,507
Total equity		2,074,310	1,560,507

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 8 February 2023
 

M C Bila
Director

Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Mendip Court
Bath Road
Wells
Somerset
BA5 3DG

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Name of parent of group

These financial statements are consolidated in the financial statements of MCB Investments Limited.

The financial statements of MCB Investments Limited may be obtained from Companies House

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover represents amounts receivable during the year for the provision of care and accommodation, where the amount received relates to a period which covers the balance sheet date, the amount is apportioned over the period to which it relates. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land	Nil
Freehold property	1% on cost
Fixtures, fittings and equipment	15% on cost
Motor Vehicles	25% on cost

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	Straight line between 7.5 and 20 years

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

Financial instruments (continued)

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was as follows:

	2022  No.	2021  No.
Average number of employees	62	63

Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

4

Intangible assets

	Goodwill  £
Cost
At 1 April 2021 and at 31 March 2022	750,000
Amortisation
At 1 April 2021	615,000
Amortisation charge	22,500
At 31 March 2022	637,500
Carrying amount
At 31 March 2022	112,500
At 31 March 2021	135,000

5

Tangible assets

	Freehold land and buildings £	Fixtures, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 1 April 2021	2,123,171	319,735	623	2,443,529
Additions	-	716	-	716
At 31 March 2022	2,123,171	320,451	623	2,444,245
Depreciation
At 1 April 2021	207,194	298,843	312	506,349
Charge for the year	17,170	7,138	156	24,464
At 31 March 2022	224,364	305,981	468	530,813
Carrying amount
At 31 March 2022	1,898,807	14,470	155	1,913,432
At 31 March 2021	1,915,977	20,892	311	1,937,180

Freehold land of £406,160 (2021 - £406,160) is not depreciated.

6

Stocks

	2022  £	2021  £
Stocks	2,725	2,725

Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

7

Debtors

	2022  £	2021  £
Trade debtors	181,116	175,594
Amounts due from group undertakings	327,875	15,710
Other debtors	60,802	36,651
Prepayments	16,632	15,135
	586,425	243,090
Less non-current portion	(244,122)	-
Total current trade and other debtors	342,303	243,090

Details of non-current trade and other debtors

£244,122 (2021 - £Nil) of amounts owed from group undertakings is classified as non-current.

8

Creditors

	2022  £	2021  £
Due within one year
Trade creditors	67,789	45,614
Amounts owed to group undertakings	463,994	631,540
Social security and other taxes	14,751	14,297
Outstanding defined contribution pension costs	2,974	2,974
Other creditors	29,808	19,987
Accrued expenses	99,975	94,352
Corporation tax liability	115,915	2,906
Deferred income	2,985	56,303
	798,191	867,973
Due after one year
Amounts owed to group undertakings	-	117,213

9

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £18,311 (2021 - £7,886).

Contributions totalling £2,974 (2021 - £2,974) were payable to the scheme at the end of the year and are included in creditors.

10

Obligations under leases and hire purchase contracts

At 31 March 2022, the company had total commitments under non-cancellable operating leases over the remaining life of those assets of £10,781 (2021 - £14,438).

11

Contingent liabilities

The company is bound by a cross company guarantee with its parent company MCB Investments Limited in respect of bank borrowings. The amount guaranteed is £5,732,688 (2021 - £5,989,375).

Sutton Veny House Limited

Notes to the Financial Statements for the Year Ended 31 March 2022

12

Parent and ultimate parent undertaking

The company's ultimate and only parent company is MCB Investments Limited, incorporated in England and Wales.The most senior parent entity producing publicly available financial statements is MCB Investments Limited. These financial statements are available upon request from the registered office.

13

Non adjusting events after the financial period

Following the year end, the company was subjected to a misappropriation of funds from its bank account. The misappropriation was unconnected to the director or any of the company's employees and as at the date of the approval of the financial statements, a total amount of c.£68K was yet to be recovered. The future recovery of this amount remains uncertain and the director is unable to estimate with any certainty as to how much of the missing funds will ultimately be recovered by the company.

14

Disclosure under Section 444(5B) CA 2006 relating to the independent auditor's report

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. Accordingly, the Independent Auditors’ Report has also been omitted.

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 9 February 2023 was Stephanie Hayman, who signed for and on behalf of Hazlewoods LLP.