Forest North Inns Limited - Limited company accounts 11.9

REGISTERED NUMBER: 03548337 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2015

FOR

FOREST NORTH INNS LIMITED

Page

Company Information

1

Report of the Directors

2

Profit and Loss Account

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

Mr N McCulloch

Mrs P McCulloch

Mr C J Bowring

REGISTERED OFFICE:

Athenia House

10-14 Andover Road

Winchester

SO23 7BS

REGISTERED NUMBER:

03548337 (England and Wales)

ACCOUNTANTS:

Wilkins Kennedy LLP

Chartered Accountants

Athenia House

10-14 Andover Road

Winchester

SO23 7BS

The directors present their report with the financial statements of the company for the year ended 30 June 2015.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2014 to the date of this

report.

Mr N McCulloch

Mrs P McCulloch

Mr C J Bowring

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act

2006 relating to small companies.

ON BEHALF OF THE BOARD:

Mr N McCulloch - Director

21 March 2016

TURNOVER

532,856

505,837

Cost of sales

219,324

224,092

GROSS PROFIT

313,532

281,745

Administrative expenses

292,422

298,187

21,110

(16,442

)

Other operating income

2,000

-

OPERATING PROFIT/(LOSS)

2

23,110

(16,442

)

Interest receivable and similar income

42

45

PROFIT/(LOSS) ON ORDINARY
ACTIVITIES BEFORE TAXATION

23,152

(16,397

)

Tax on profit/(loss) on ordinary activities

3

8

-

PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

23,144

(16,397

)

FIXED ASSETS

Tangible assets

4

345,624

355,464

CURRENT ASSETS

Stocks

7,068

5,993

Debtors

5

34,151

14,892

Cash at bank

40,953

46,976

82,172

67,861

CREDITORS

Amounts falling due within one year

6

53,881

72,554

NET CURRENT ASSETS/(LIABILITIES)

28,291

(4,693

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

373,915

350,771

CREDITORS

Amounts falling due after more than one
year

7

708,996

NET LIABILITIES

(335,081

)

(358,225

)

CAPITAL AND RESERVES

Called up share capital

8

2

Profit and loss account

9

(335,083

)

(358,227

)

SHAREHOLDERS' FUNDS

(335,081

)

(358,225

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 30 June 2015.

The members have not required the company to obtain an audit of its financial statements for the year ended 30 June 2015 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 in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Directors on 21 March 2016 and were signed on its
behalf by:

Mr N McCulloch - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The accounts have been prepared as a going concern because the directors of the holding company

consider their loan of £489,628 to be a long term investment. They have agreed not to seek

repayment in the foreseeable future, and in any event not before 30 June 2017.

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance

with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Turnover

Turnover represents the value, net of value added tax and discounts, of goods provided to customers

and work carried out in respect of services provided to customers.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated

useful life.

Freehold property - straight line over 50 years

Plant and machinery - straight line over 4 - 20 years

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Parent company expenses

Expenses of the parent company, Forest North Holdings Limited, are paid by Forest North Inns Limited

and included in its own expenditure.

2.	OPERATING PROFIT/(LOSS)

The operating profit (2014 - operating loss) is stated after charging:

2015

2014

£

Depreciation - owned assets

11,494

12,866

Directors' remuneration and other benefits etc

47,000

3.

TAXATION

Analysis of the tax charge

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

2015

2014

£

Current tax:

UK corporation tax

8

-

Tax on profit/(loss) on ordinary activities

8

-

4.	TANGIBLE FIXED ASSETS

Freehold

Plant and

property

machinery

Totals

£

COST

At 1 July 2014

438,862

146,295

585,157

Additions

-

1,654

Disposals

-

(4,337

)

(4,337

)

At 30 June 2015

438,862

143,612

582,474

DEPRECIATION

At 1 July 2014

96,752

132,941

229,693

Charge for year

6,209

5,285

11,494

Eliminated on disposal

-

(4,337

)

(4,337

)

At 30 June 2015

102,961

133,889

236,850

NET BOOK VALUE

At 30 June 2015

335,901

9,723

345,624

At 30 June 2014

342,110

13,354

355,464

The directors' estimate of the cost of freehold land, bought together with buildings and on which no

depreciation is provided, is £131,000 (2014: £131,000).

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2015

2014

£

Trade debtors

-

12,656

Other debtors

20,448

502

Prepayments and accrued income

13,703

1,734

34,151

14,892

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2015

2014

£

Trade creditors

23,867

40,822

Corporation tax

8

-

Value added tax

20,842

21,271

Other creditors

5,038

7,959

Accrued expenses

4,126

2,502

53,881

72,554

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

2015

2014

£

Amount owed to group

undertakings

489,628

Directors' loan accounts

219,368

708,996

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2015

2014

value:

£

2

ordinary

2

9.

RESERVES

Profit

and loss

account

£

At 1 July 2014

(358,227

)

Profit for the year

23,144

At 30 June 2015

(335,083

)

10.	RELATED PARTY DISCLOSURES

Mr C J Bowring, a director and shareholder, has made interest free loans to the company. The

balance outstanding at 30 June 2015 amounted to £219,368 (2014: £219,368).

Forest North Holdings Limited, the ultimate parent of Forest North Inns Limited, has made interest free

loans to the company. The balance outstanding at 30 June 2015 amounted to £489,628 (2014:

£489,628).

During the year, the company received from a related party, Forest North Farms Limited, £11,456

(2014: £10,432) as management charges. At the year end £11,459 (2014: £10,432) remains

outstanding.

11.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Mr C J Bowring by virtue of a majority shareholding.