TOWCESTER_RACECOURSE_COMP - Accounts

Going concern

The financial statements have been prepared on a going concern basis despite the balance sheet showing a deficit of shareholders funds of £3,189,274 as at 31 December 2015. The directors believe that it is appropriate to prepare the financial statements on a going concern basis for the reasons set out below.

The Lord Hesketh KBE, has provided the company with an undertaking that, for a period of at least 12 months from the date of approval of these financial statements, he will continue to make available such funds as needed by the company and in particular will not seek repayment of the amounts currently owed to him.

The company has a loan of £2,198,423 payable to The Trustees of the Second Baron Hesketh's Will Trust which was due to be repaid in July 2016 and to which financial covenants are attached. The Trustees have agreed to a revised repayment date of 31 July 2017 in respect of this loan, subject to certain provisos, and have confirmed that no enforcement action will be taken in respect of the breach of the financial covenants in respect of the year ended 31 December 2015.

The company has additional debts totalling £2,252,362 payable to The Trustees of the Second Baron Hesketh's Will Trust, and £182,683 payable to the Trustees of the Third Baron Hesketh's Life Interest Settlement. The directors have received confirmation that the trustees do not intend to call for repayment until the earlier of the company having sufficient funds to repay, and the 12 month period from the date on which these financial statements are signed.

The company has prepared budgets and cash flow forecasts for the period to 31 December 2017 which indicate that the company's trading activities will generate positive cash flows in order to enable the company to pay its trading debts as they fall due.

Based on the continuing support of The Lord Hesketh KBE and Trustees of the Second Baron Hesketh's Will Trust, as well as the forecasts for the period to 31 December 2017, the directors believe that it is appropriate to prepare the financial statements on a going concern basis.

Turnover represents admissions to the racecourse, annual membership fees, all income from the provision of the services for race day meetings and all income from the use of the racecourse and its facilities on non-race days, net of value added tax where applicable. Turnover is only recognised in respect of events which have taken place during the financial year. admissions to the racecourse, annual membership fees, all income from the provision of the services for race day meetings and all income from the use of the racecourse and its facilities on non-race days, net of value added tax where applicable.

Turnover is only recognised in respect of events which have taken place during the financial year.

Race day fixtures purchased separately by the company are capitalised at their cost. Race day fixtures owned by the company and/or acquired for nil value are stated at valuation. Valuations are carried out periodically on the basis of the existing use value as required by the Financial Reporting Standard for Smaller Entities. On an annual basis the valuations of the race day fixtures are reviewed for impairment by the directors.

Race day fixtures owned by the company and/or acquired for nil value are stated at valuation. Valuations are carried out periodically on the basis of the existing use value as required by the Financial Reporting Standard for Smaller Entities. On an annual basis the valuations of the race day fixtures are reviewed for impairment by the directors.

No depreciation is provided on land and buildings. This is a departure from the Companies Act but the directors believe this is appropriate as the buildings are maintained to a high standard and the original cost reflects the current carrying cost.

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they relate..