Royal Naval Club & RAYC Ltd - Accounts to registrar - small 17.1

REGISTERED NUMBER: 08803953 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

FOR

ROYAL NAVAL CLUB AND ROYAL ALBERT YACHT

CLUB LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

Chartered Accountants' Report

7

DIRECTORS:

Mr K L Toomey

Mr M J G Linington

Rear Adml J G Tolhurst, CB

Mr J R Lear

Mr D Porter

Mr J Galley

Commander W J G Smith

Mr B C Bellinger

Mr P Tribe

Mr J Pullinger

Mr A Saunders

Mrs K Butwilowska

SECRETARY:

Mrs T T Cotton

REGISTERED OFFICE:

17 Pembroke Road

Portsmouth

Hampshire

PO1 2NT

REGISTERED NUMBER:

08803953 (England and Wales)

ACCOUNTANTS:

Rothman Pantall LLP

Chartered Accountants

Chilworth Point

1 Chilworth Road

Southampton

SO16 7JQ

FIXED ASSETS

Tangible assets

4

1,398,438

1,406,070

CURRENT ASSETS

Stocks

8,206

8,461

Debtors

5

13,651

9,802

Cash at bank and in hand

2,084

5,328

23,941

23,591

CREDITORS

Amounts falling due within one year

6

140,059

151,857

NET CURRENT LIABILITIES

(116,118

)

(128,266

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,282,320

1,277,804

CREDITORS

Amounts falling due after more than one year

7

115,976

124,495

NET ASSETS

1,166,344

1,153,309

RESERVES

Other reserves

9

15,234

13,350

Income and expenditure account

9

1,151,110

1,139,959

1,166,344

1,153,309

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2016 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 surplus or deficit 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 of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors on 23 May 2017 and were signed on its behalf by:

Mr K L Toomey - Director

1.	STATUTORY INFORMATION

Royal Naval Club and Royal Albert Yacht Club Limited is a private company, limited by guarantee , registered in

England and Wales. The company's registered number and registered office address can be found on the

Company Information page.

2.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

SIGNIFICANT JUDGEMENTS AND ESTIMATES

In preparing these financial statements, the directors have made the following judgements:

>

Determine whether leases entered into by the club as a lessee are operating leases or financial leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

>

Determine whether there are indicators of impairment of the club's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

>

Determine whether refurbishment works undertaken are accounted for as repair costs or capital improvements.

TURNOVER

Income is recognised in the period in which the Club is entitled to receipt of that income and when the amount

can be measured with reasonable accuracy. In accordance with this policy:

House and catering sales are recognised on the date of purchase.

Revenue from functions are included within house and catering sales and are recognised on the date of the

event.

Office rents and mooring rents receivable are recognised on an accruals basis.

Subscription receipts are recognised on an accruals basis over the membership year which is coterminous with

the accounting year.

TANGIBLE FIXED ASSETS

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

life.

Equipment - 20% on reducing balance or 5% on cost

Fixtures and fittings - 20% on reducing balance

Short leasehold - 27 years straight line on cost

The directors are of the opinion that residual value of the freehold property will exceed the cost value and

therefore it would not be appropriate to depreciate.

The freehold property is a mixed use property as a portion of the building is let out as office space. The directors

are of the opinion that the offices should not be split out as investment property as this would incur undue cost

and effort and the cost would outweigh the benefits to the users of the accounts.

The short leasehold moorings are depreciated over the life of the lease.

The heritage assets relates to antiques held by the club for their contribution to knowledge and culture. The

antiques are reviewed for impairment annually and any impairment losses are taken to the profit and loss

account annually.

STOCKS

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

slow moving items.

PENSIONS

The club operates a defined contribution pension scheme. Contributions payable for the year are charged in the

profit and loss account.

SHORT-TERM DEBTORS AND CREDITORS

Debtors and creditors receivable and payable within one year or upon demand are recorded at transaction price

whether or not a rate of interest is charged on the balance. Any losses arising from impairment are recognised in

the income statement in other operating expenses.

FINANCIAL INSTRUMENTS

The club only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.

Basic financial instruments are initially recognised at transaction value and subsequently measured at their

settlement value with the exception of bank loans which are subsequently measured at amortised cost using the

effective interest method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 25 (2015 - 25 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Freehold

Short

to

property

leasehold

property

£

£

£

COST

At 1 January 2016

850,000

30,000

78,457

At 31 December 2016

850,000

30,000

78,457

DEPRECIATION

At 1 January 2016

-

1,111

-

Charge for year

-

1,111

-

At 31 December 2016

-

2,222

-

NET BOOK VALUE

At 31 December 2016

850,000

27,778

78,457

At 31 December 2015

850,000

28,889

78,457

Fixtures

Heritage

and

Equipment

assets

fittings

Totals

£

£

£

£

COST

At 1 January 2016

53,868

406,250

7,681

1,426,256

Additions

1,396

-

1,455

2,851

At 31 December 2016

55,264

406,250

9,136

1,429,107

DEPRECIATION

At 1 January 2016

17,539

-

1,536

20,186

Charge for year

7,545

-

1,827

10,483

At 31 December 2016

25,084

-

3,363

30,669

NET BOOK VALUE

At 31 December 2016

30,180

406,250

5,773

1,398,438

At 31 December 2015

36,329

406,250

6,145

1,406,070

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Trade debtors

8,762

5,342

Other debtors

1,422

1,001

Prepayments and accrued income

3,467

3,459

13,651

9,802

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2016

2015

£

£

Debentures

23,000

25,000

Bank loans and overdrafts

35,700

49,428

Trade creditors

21,141

16,674

Social security and other taxes

23,238

23,137

Other creditors

16,658

12,345

Subscriptions and moorings

11,195

15,770

Accruals and deferred income

9,127

9,503

140,059

151,857

Interest is charged on the debentures at 3% per annum and they are repayable on demand.

Interest on bank lending is payable at market rates.

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2016

2015

£

£

Bank loans - 1-2 years

12,876

12,876

Bank loans - 2-5 years

38,628

38,628

Bank loans more than

5 years by instalments

64,472

72,991

115,976

124,495

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more than

5 years by instalments

64,472

72,991

64,472

72,991

8.	SECURED DEBTS

The following secured debts are included within creditors:

2016

2015

£

£

Bank overdrafts

22,824

36,552

Bank loans

128,852

137,371

151,676

173,923

The bank holds a First Legal charge over the freehold property at 17 Pembroke Road, Portsmouth and its

associated assets. Included in total loans outstanding at 31 December 2016 is £64,472 (2015: £72,991) due to

be paid by instalments after five years.

9.

RESERVES

During the year capital contributions have been received from members totalling £1,884 (2015: £13,350). The

directors do not anticipate any recourse from members.

10.	LIMITED BY GUARANTEE

The company is limited by guarantee and has no share capital.

In the event of a winding up of the company, every member undertakes to contribute to the assets of the

company, such an amount as may be required but not exceeding £1.

The following reproduces the text of the report prepared for the directors and members in respect of the

company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is

only required to file a Balance Sheet. Readers are cautioned that the Statement of Comprehensive Income and

certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of

Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the

financial statements of Royal Naval Club and Royal Albert Yacht Club Limited for the year ended 31 December 2016

which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records

and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Royal Naval Club and Royal Albert Yacht Club Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Royal Naval Club and Royal Albert Yacht Club Limited and state those matters that we have agreed to state to the Board of Directors of Royal Naval Club and Royal Albert Yacht Club Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Royal Naval Club and Royal Albert Yacht Club Limited Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Royal Naval Club and Royal Albert Yacht Club Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Royal Naval Club and Royal Albert Yacht Club Limited. You consider that Royal Naval Club and Royal Albert Yacht Club Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Royal Naval Club and Royal Albert Yacht Club Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Rothman Pantall LLP

Chartered Accountants

Chilworth Point

1 Chilworth Road

Southampton

SO16 7JQ

Date: .............................................