Scotts Inns Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 06721246 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 March 2023

for

Scotts Inns Limited

Page

Balance Sheet

1

Notes to the Financial Statements

3

Fixed assets

Intangible assets

5

13,958

16,458

Tangible assets

6

1,903,527

1,790,783

1,917,485

1,807,241

Current assets

Stocks

25,573

24,556

Debtors

7

850,019

828,647

Cash at bank and in hand

516,916

628,619

1,392,508

1,481,822

Creditors

Amounts falling due within one year

8

(198,656

)

(228,172

)

Net current assets

1,193,852

1,253,650

Total assets less current liabilities

3,111,337

3,060,891

Creditors

Amounts falling due after more than one year

9

(642,221

)

(748,611

)

Provisions for liabilities

(248,773

)

(187,636

)

Net assets

2,220,343

2,124,644

Capital and reserves

Called up share capital

100

100

Revaluation reserve

10

506,909

514,161

Retained earnings

1,713,334

1,610,383

2,220,343

2,124,644

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 1 December 2023 and were signed on its behalf by:

Mr I R Scott - Director

Mrs M N Goss - Director

1.	Statutory information

Scotts Inns Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

06721246

Registered office:

East Coast House

Galahad Road

Gorleston

Great Yarmouth

Norfolk

NR31 7RU

The presentation currency of the financial statements is the Pound Sterling (£).

2.	Statement of compliance

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.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2008, is being amortised evenly over its estimated useful life of twenty years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property - 1% on cost

Motor vehicles - 25% p.a. reducing balance

Fixtures and fittings - 10% 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.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

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.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the assets is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.

Government grants are recognised using the accrual model.

Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

4.	Employees and directors

The average number of employees during the year was 51 (2022 - 51 ) .

5.	Intangible fixed assets

Goodwill

£

Cost

At 1 April 2022

and 31 March 2023

50,000

Amortisation

At 1 April 2022

33,542

Amortisation for year

2,500

At 31 March 2023

36,042

Net book value

At 31 March 2023

13,958

At 31 March 2022

16,458

6.	Tangible fixed assets

Fixtures

Freehold

and

Motor

property

fittings

vehicles

Totals

£

£

£

£

Cost

At 1 April 2022

1,651,286

761,509

14,999

2,427,794

Additions

150,000

9,492

-

159,492

At 31 March 2023

1,801,286

771,001

14,999

2,587,286

Depreciation

At 1 April 2022

171,760

453,404

11,847

637,011

Charge for year

15,071

30,889

788

46,748

At 31 March 2023

186,831

484,293

12,635

683,759

Net book value

At 31 March 2023

1,614,455

286,708

2,364

1,903,527

At 31 March 2022

1,479,526

308,105

3,152

1,790,783

Freehold property is held at valuation. An independent valuer noted the value of the freehold property on 13 October 2008. The directors consider this valuation appropriate at 31 March 2023.

7.

Debtors: amounts falling due within one year

2023

2022

£

£

Trade debtors

7,148

9,963

Other debtors

842,871

818,684

850,019

828,647

Other debtors above includes £810,815 (2022 : £773,353) falling due after more than one year.

8.

Creditors: amounts falling due within one year

2023

2022

£

£

Trade creditors

81,508

74,315

Taxation and social security

103,891

143,278

Other creditors

13,257

10,579

198,656

228,172

9.

Creditors: amounts falling due after more than one year

2023

2022

£

£

Other creditors

642,221

748,611

10.

Reserves

During the year, a transfer from the revaluation reserve was made of £7,252, (2022 : £7,251) to the profit and loss reserve in respect of depreciation on revalued property.

11.	Related party disclosures

Included within other debtors falling due after more than one year is a loan to Stardrop Limited, a company in which the directors have an interest. The amount outstanding at the year end amounted to £850,315 (2022 : £812,853).