ACCOUNTS - Final Accounts

ACCOUNTS - Final Accounts

DUCHALLY HOUSE LEISURE LIMITED - Company Information

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Registered number: 03628883









DUCHALLY HOUSE LEISURE LIMITED









DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022
 
DUCHALLY HOUSE LEISURE LIMITED
 

CONTENTS



Page
Company Information
1
Directors' Report
2 - 4
Independent Auditors' Report
5 - 9
Statement of Comprehensive Income
10
Balance Sheet
11
Statement of Changes in Equity
12 - 13
Notes to the Financial Statements
14 - 26

 
DUCHALLY HOUSE LEISURE LIMITED
 
 
COMPANY INFORMATION


Director
G C Peires (appointed 30 September 2023)




Company secretary
Mapa Management & Administration Services Limited



Registered number
03628883



Registered office
Hallswelle House
1 Hallswelle Road

London

NW11 0DH




Independent auditors
White Hart Associates (London) Limited
Chartered Accountants and Statutory Auditors

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA




Bankers
Barclays Bank PLC
Edgeware Group 9

Leicester

Leicestershire

LE87 2BB




Solicitors
Shepherd and Wedderburn LLP
1 Exchange Crescent

Conference Square

Edinburgh

EH3 8UL




Page 1
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


∙select suitable accounting policies for the Company's financial statements and then apply them consistently;

∙make judgments 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

Principal activity

The principal activity of the company is that of hotel ownership and management.

Results and dividends

The loss for the year, after taxation, amounted to £91,537 (2021 - profit £107,121).

The directors do not recommend the payment of a dividend (2021: £Nil) and the retained loss for the year of £91,537 (2021: profit of £107,121) has been transferred to reserves.

Page 2
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


Directors

The directors who served during the year were:

H M O'Donnell (resigned 30 September 2023)
G Wilding (resigned 31 October 2023)

Going concern

The directors are fully aware of their duty to assess the company’s going concern status and have attended to this with particular care in consideration of the current economic outlook.  The company is part of the wider IDILIQ Group of companies. The ultimate parent company, Bejenno Holding Ltd, has confirmed its intention to continue to provide ongoing support to the company as required. Having considered the ability of Bejenno Holding Ltd to provide that support, based on the confirmation received, the directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.  
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Principal risks and uncertainties

Liquidity risk
In order to maintain liquidity and ensure that sufficient funds are available for ongoing operations and future developments, the company uses group debt finance.

Credit risk
Credit risk is the risk that one party of a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisty credit worthiness procedures. Details of the Company's debtors are shown in note 10 to the financial statements.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditors, White Hart Associates (London) Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Page 3
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 12 December 2023 and signed on its behalf.
 





G C Peires
Director

Page 4
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUCHALLY HOUSE LEISURE LIMITED
 

Opinion


We have audited the financial statements of Duchally House Leisure Limited (the 'Company') for the year ended 31 December 2022, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, 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 Company's affairs as at 31 December 2022 and of its loss 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.


Page 5
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUCHALLY HOUSE LEISURE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' Report thereon.  The directors are responsible for the other information contained within the Annual Report.  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. 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 course of 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit; or
∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.


Page 6
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUCHALLY HOUSE LEISURE LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are 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 directors determine is 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 directors are responsible for assessing the 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 directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUCHALLY HOUSE LEISURE LIMITED (CONTINUED)


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 an Auditors' Report 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.


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 exercise professional judgment and maintain professional skepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control; 
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
- We conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.


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 Auditors' Report.


Page 8
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DUCHALLY HOUSE LEISURE LIMITED (CONTINUED)


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 an Auditors' Report 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.





M S Caldicott ACA FCCA CTA (Senior Statutory Auditor)
  
for and on behalf of
White Hart Associates (London) Limited
 
Chartered Accountants and Statutory Auditors
  
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

12 December 2023
Page 9
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
3,411,977
2,882,845

Cost of sales
  
(353,976)
(196,172)

Gross profit
  
3,058,001
2,686,673

Administrative expenses
  
(3,153,885)
(2,835,704)

Other income
 5 
5,358
320,568

Operating (loss)/profit
  
(90,526)
171,537

Finance cost
  
-
(32,730)

(Loss)/profit before tax
  
(90,526)
138,807

Tax on (loss)/profit
 7 
(1,011)
(31,686)

(Loss)/profit for the financial year
  
(91,537)
107,121

Other comprehensive income for the year
  

  

Total comprehensive income for the year
  
(91,537)
107,121

The notes on pages 14 to 26 form part of these financial statements.

Page 10
 
DUCHALLY HOUSE LEISURE LIMITED
REGISTERED NUMBER: 03628883

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 8 
897,247
919,010

  
897,247
919,010

Current assets
  

Stocks
 9 
1,783,410
1,623,736

Debtors: amounts falling due within one year
 10 
442,571
388,249

Cash at bank and in hand
 11 
10,808
62,413

  
2,236,789
2,074,398

Creditors: amounts falling due within one year
 12 
(3,202,366)
(2,971,212)

Net current liabilities
  
 
 
(965,577)
 
 
(896,814)

Total assets less current liabilities
  
(68,330)
22,196

Provisions for liabilities
  

Deferred tax
 13 
(40,269)
(39,258)

  
 
 
(40,269)
 
 
(39,258)

Net liabilities
  
(108,599)
(17,062)


Capital and reserves
  

Called up share capital 
  
2
2

Profit and loss account
  
(108,601)
(17,064)

  
(108,599)
(17,062)


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 December 2023.




G C Peires
Director

The notes on pages 14 to 26 form part of these financial statements.

Page 11
 
DUCHALLY HOUSE LEISURE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
2
(17,064)
(17,062)


Comprehensive income for the year

Loss for the year

-
(91,537)
(91,537)


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
(91,537)
(91,537)


Total transactions with owners
-
-
-


At 31 December 2022
2
(108,601)
(108,599)


The notes on pages 14 to 26 form part of these financial statements.

Page 12
 
DUCHALLY HOUSE LEISURE LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
2
(124,185)
(124,183)


Comprehensive income for the year

Profit for the year

-
107,121
107,121


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
107,121
107,121


Total transactions with owners
-
-
-


At 31 December 2021
2
(17,064)
(17,062)


The notes on pages 14 to 26 form part of these financial statements.

Page 13
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

Duchally House Leisure Limited is a company incorporated in the United Kingdom under the Companies Act 2006.The Company is a private Company limited by shares registered in England and Wales. The address of the Company’s registered office is shown on page 1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors are fully aware of their duty to assess the company’s going concern status and have attended to this with particular care in consideration of the current economic outlook.  The company is part of the wider IDILIQ Group of companies. The ultimate parent company, Bejenno Holding Ltd, has confirmed its intention to continue to provide ongoing support to the company as required. Having considered the ability of Bejenno Holding Ltd to provide that support, based on the confirmation received, the directors believe that the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.  
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Revenue

Turnover represents amounts derived from the provision of goods and services which fall within the Company's ordinary activites after deduction of discounts and Value Added Tax. Revenue relating to travel arrangements and similar bookings is recognised at the date of departure. Income from hospitality services is recognised at it falls due except for that received in respect of future years, which is deferred to the appropriate period.

 
2.5

Leases

Rental under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term, except where the period to review date on which the rent is first expected to be adjusted to the prevailling market rate is shorter than the full lease term, in which case the shorter period is used.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge 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.

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

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.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
4% straight line
Plant and machinery - General
-
33% straight line
Plant and machinery - Biomass
-
5% straight line
Motor vehicles
-
33% straight line
Fixtures and fittings
-
25% - 33% straight line
Assets under construction
-
No depreciation
Land
-
No depreciation

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.

Page 16
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.11

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock 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 or loss.

 
2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are 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.

 
2.14

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 17
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.16

Financial instruments

The Company only enters into basic financial instrument 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 ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Investments in non-derivative instruments that are equity to the issuer are measured:
∙at fair value with changes recognised in the Statement of Comprehensive Income if the shares are publicly traded or their fair value can otherwise be measured reliably;
∙at cost less impairment for all other investments.

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 the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives.

Page 18
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in the note 1, the director is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. No such revisions have been required in the current period. The directors have not identified any critical accounting judgements or key sources of estimation uncertainty.


4.


Turnover

Turnover represents amounts derived from the provision of goods and services, within the UK, which fall within the company's ordinary activities after deduction of discounts and Value Added Tax. Revenue is recognised at the point of sale of goods or provision of services.
The provision of services include accomodation income, commercial income and maintenance fees totalling £2,863,371 (2021: £2,607,646). The sale of goods includes food and beverages totalling £548,606 (2021: £275,199).


5.


Other income

2022
2021
£
£

Other income
5,358
5,459

Government grants receivable
-
270,397

Profit on disposal of tangible assets
-
44,712

5,358
320,568


In response to the Covid-19 pandemic, the Company took advantage of the Coronavirus Job Retention Scheme ("CJRS"), which resulted in the Company receiving a grant of £Nil (2021: £211,122) to cover the salary costs of certain employees.

Page 19
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Employees

2022
2021
£
£

Wages and salaries
1,045,912
943,908

Social security costs
79,440
66,283

Cost of defined contribution scheme
17,418
15,942

1,142,770
1,026,133


The average monthly number of employees, including directors, during the year was 57 (2021 - 55).


7.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
-
16,309


-
16,309


Total current tax
-
16,309

Deferred tax


Origination and reversal of timing differences
1,011
15,377

Total deferred tax
1,011
15,377


Taxation on profit on ordinary activities
1,011
31,686
Page 20
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
7.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


(Loss)/profit on ordinary activities before tax
(90,526)
138,807


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
(17,200)
26,373

Effects of:


Expenses not deductible for tax purposes
7,891
7,892

Capital allowances for year in excess of depreciation
3,232
(15,377)

Deferred Tax
1,011
15,377

Group relief claimed/surrendered for no payment
5,757
(2,579)

Other timing differences
320
-

Total tax charge for the year
1,011
31,686


Factors that may affect future tax charges

In the March 2021 Budget, the UK Government announced that legislation would be introduced in Finance Bill 2021 to increase the main rate of UK corporation tax from 19% to 25%, effective 1 April 2023.
Accordingly, the deferred tax balances as at 31 December 2022 have been measured at a rate of 25%. 

Page 21
 


 
DUCHALLY HOUSE LEISURE LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022


8.


Tangible fixed assets






Freehold buildings
Freehold land
Plant and machinery
Motor vehicles
Fixtures and fittings
Asset in the course of construction
Total

£
£
£
£
£
£
£



Cost or valuation


At 1 January 2022
2,016,190
130,189
261,101
28,328
619,192
55,716
3,110,716


Additions
36,649
-
6,901
-
8,509
52,645
104,704



At 31 December 2022

2,052,839
130,189
268,002
28,328
627,701
108,361
3,215,420



Depreciation


At 1 January 2022
1,503,414
-
101,604
25,995
560,693
-
2,191,706


Charge for the year on owned assets
83,701
-
12,946
1,000
28,820
-
126,467



At 31 December 2022

1,587,115
-
114,550
26,995
589,513
-
2,318,173



Net book value



At 31 December 2022
465,724
130,189
153,452
1,333
38,188
108,361
897,247



At 31 December 2021
512,776
130,189
159,497
2,333
58,499
55,716
919,010

Page 22
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

9.


Stocks

2022
2021
£
£

Lodges
1,725,215
1,572,566

Raw materials and consumables
58,195
51,170

1,783,410
1,623,736


There is no material difference between the balance sheet value of stock and their replacement cost.


10.


Debtors

2022
2021
£
£


Trade debtors
147,874
156,402

Amounts owed by group undertakings
36,481
18,128

Amounts owed by related party undertakings
103,220
53,028

Other debtors
32,285
90,940

Prepayments and accrued income
122,711
69,751

442,571
388,249


Amounts owed by group and related party undertakings are interest free and repayable on demand.


11.


Cash and cash equivalents

2022
2021
£
£

Cash at bank and in hand
10,808
62,413

10,808
62,413


Page 23
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
243,795
98,657

Amounts owed to group undertakings
2,351,106
2,269,552

Amounts owed to related party undertakings
285,850
346,221

Corporation tax
-
16,309

Other taxation and social security
46,235
16,108

Other creditors
33,287
-

Accruals and deferred income
242,093
224,365

3,202,366
2,971,212


Amounts owed to group and related party undertakings are interest free and repayable on demand.


13.


Deferred taxation




2022


£






At beginning of year
(39,258)


Charged to profit or loss
(1,011)



At end of year
(40,269)

The provision for deferred taxation is made up as follows:

2022
2021
£
£


Accelerated capital allowances
(41,634)
(39,975)

Tax losses carried forward
944
717

Other timing differnces
421
-

(40,269)
(39,258)

Page 24
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



2 (2021 - 2) Ordinary shares of £1.00 each
2
2



15.


Ultimate parent company

The immediate parent company is CLC Resort Management Limited, incorporated in the Isle of Man, which is exempt of preparing consolidated financial statements. The registered office address of CLC Resort Management is 19-21 Circular Road, Douglas, IM1 1AF, Isle of Man.
The ultimate parent company is Bejenno Holding Limited, a company incorporated in Cyprus.
In the opinion of the directors the ultimate controlling party is Cavendish Trustees Limited.


16.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£

Land and building


Not later than 1 year
302,241
348,290

Later than 1 year and not later than 5 years
168,000
470,241

470,241
818,531

2022
2021

£
£

Plant and machinery


Not later than 1 year
9,442
4,139

Later than 1 year and not later than 5 years
5,940
-

15,382
4,139

Page 25
 
DUCHALLY HOUSE LEISURE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

17.


Related party transactions

During the year the company made the following related party transactions:

Sales to related party
Sales to related party
Operating and other costs from related party
Operating and other costs from related party
Amounts owed (to)/by related party at 31 December
Amounts owed (to)/by related party at 31 December
     £ - 2022
     £ - 2021
     £ - 2022
     £ - 2021
     £ - 2022
     £ - 2021
Group Companies

CLC Resort Management Ltd

1,146,396

1,297,177

-
 
-
 
(1,423,680)

(1,437,374)

Trenython Leisure Ltd

-

-

-
 
-
 
(399,336)

(338,291)

Duchally House Resorts Ltd

-

-

-
 
-
 
10,784

10,784

Hustyns Leisure Ltd

-

-

-
 
-
 
(523,490)

(491,490)

RMF Europe Ltd

2,760

7,344

-
 
-
 
10,103

7,344

RMF Andalusian Management

-

-

(583)
 
(2,397)
 
(4,600)

(2,397)

Hotelbetriebs GMBH

-

-

-
 
-
 
15,593

-

Related Parties

Jade Properties Management S.L

-

-

(31,979)
 
-
 
(32,714)

-

Ambassador Holidays Limited

-

-

-
 
-
 
620

-

Glinton Ltd

-

1,133

-
 
-
 
1,133

1,133

CLC Resort Development Ltd

83,663

143,022

-
 
-
 
101,467

51,895

Jade Realty Ltd

419

-

(67,785)
 
(267,191)
 
(216,304)

(309,389)

Holiday Leisure Ltd

-

-

-
 
-
 
(36,832)

(36,832)

Real Estate Promotions Ltd

-

-

-
 
(32,730)
 
-

-


Page 26