Phoenix Leisure Management Limited - Limited company accounts 17.3
Phoenix Leisure Management Limited - Limited company accounts 17.3
| REGISTERED NUMBER: 02992507 (England and Wales) |
| GROUP STRATEGIC REPORT, |
| REPORT OF THE DIRECTORS AND |
| CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| FOR |
| PHOENIX LEISURE MANAGEMENT LIMITED |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 6 |
| Consolidated Income Statement | 8 |
| Consolidated Other Comprehensive Income | 9 |
| Consolidated Balance Sheet | 10 |
| Company Balance Sheet | 12 |
| Consolidated Statement of Changes in Equity | 14 |
| Company Statement of Changes in Equity | 15 |
| Consolidated Cash Flow Statement | 16 |
| Notes to the Consolidated Cash Flow Statement | 17 |
| Notes to the Consolidated Financial Statements | 18 |
| PHOENIX LEISURE MANAGEMENT LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants & Statutory Auditor |
| Portland House |
| 11-13 Station Road |
| Kettering |
| Northamptonshire |
| NN15 7HH |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| The directors present their strategic report of the company and the group for the year ended 31st March 2017. |
| REVIEW OF BUSINESS |
| The group runs one of the largest and most environmentally friendly leisure sites in the UK with a total floor area |
| in excess of 120,000 sq ft. It consists of a health & leisure club, conference facilities with exhibition space, kids |
| indoor play area, a theatre and sports arena. |
| We provide sports facilities for the local community as well as hosting major regional and international |
| tournaments such as hockey, table tennis, tiquando and badminton. In addition we are the National Volleyball |
| Centre which involves national and international matches as well as providing training facilities for the England |
| squads. |
| We provide hospitality, conferencing facilities up to 1,500 delegates and believe that our location is ideally suited |
| to allow us to significantly increase this aspect of our business particularly when linked to exhibitions. We have |
| developed a targeted marketing plan to this affect. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The directors are of the opinion that a thorough risk management plan is adopted which involves the formal |
| review of all the risks identified below. Where possible processes are in place to monitor and mitigate such risks. |
| The management of the business and the nature of the group's strategy are subject to a number of risks. Below |
| are the principal risks facing the business. |
| Competition |
| The group operates in a highly competitive market. Policies of upgrading, improvement and ongoing market |
| research are in place to mitigate such risks. |
| Credit risk |
| The group strives to manage its credit risk by dealing with established customers or otherwise checking the |
| creditworthiness of new customers, obtaining clear contractual relationships with those customers and by |
| ascertaining and addressing any credit issues arising in a timely manner. |
| Employees |
| The success of the group relies on the performance of its staff. To mitigate these issues the group offers a |
| competitive package to retain its employees. |
| The principal risks and uncertainties above have been further mitigated by the change in principal activity of the |
| group from 1 April 2017. |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| GROUP STRATEGIC REPORT |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| FINANCIAL KEY PERFORMANCE INDICATORS |
| The directors have monitored the progress of the overall group strategy and the individual strategic elements by |
| reference to certain key performance indicators: |
| -Turnover of £3,350,741 (2016 - £3,342,920) |
| -Operating profit of £134,338 (2016 - £667,220) |
| -Profit before tax of £72,398 (2016 - £442,272) |
| ON BEHALF OF THE BOARD: |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| The directors present their report with the financial statements of the company and the group for the year ended |
| 31st March 2017. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group during the year was the operation of sport, leisure and conference facilities. |
| From the 1 April 2017 the principal activity of the group changed to property investment. |
| DIVIDENDS |
| An interim dividend of 63.3p per share was paid on 31st December 2016. The directors recommend that no final |
| dividend be paid. |
| The total distribution of dividends for the year ended 31st March 2017 will be £ 50,000 . |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors who have held office during the period from 1st April 2016 to the date of this report are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally |
| Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In |
| preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position |
| of the company and the group and 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 the group and |
| hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
| Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that |
| he ought to have taken as a director in order to make himself aware of any relevant audit information and to |
| establish that the group's auditors are aware of that information. |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| AUDITORS |
| The auditors, Bewers Turner & Co Limited, are deemed to be re-appointed in accordance with an elective |
| resolution made under section 386 of the Companies Act 1985 which continues in force under the Companies Act |
| 2006. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| PHOENIX LEISURE MANAGEMENT LIMITED |
| We have audited the financial statements of Phoenix Leisure Management Limited for the year ended |
| 31st March 2017 on pages eight to thirty two. The financial reporting framework that has been applied in their |
| preparation is 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'. |
| 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 a Report of the Auditors 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. |
| Respective responsibilities of directors and auditors |
| Scope of the audit of the financial statements |
| An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to |
| give reasonable assurance that the financial statements are free from material misstatement, whether caused by |
| fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group's |
| and the parent company's circumstances and have been consistently applied and adequately disclosed; the |
| reasonableness of significant accounting estimates made by the directors; and the overall presentation of the |
| financial statements. In addition, we read all the financial and non-financial information in the Group Strategic |
| Report and the Report of the Directors to identify material inconsistencies with the audited financial statements |
| and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the |
| knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material |
| misstatements or inconsistencies we consider the implications for our report. |
| Opinion on financial statements |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company's affairs as at 31st March 2017 and of the group's profit 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. |
| Opinion on other matter prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of our audit, the information given in the Group |
| Strategic Report and the Report of the Directors for the financial year for which the financial statements are |
| prepared is consistent with the financial statements, and has been prepared in accordance with applicable legal |
| requirements. In the light of the knowledge and understanding of the group and the parent company and its |
| environment, we have not identified any material misstatements in the Group Strategic Report or the Report of |
| the Directors. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| PHOENIX LEISURE MANAGEMENT LIMITED |
| Matters on which we are required to report by exception |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report |
| to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company 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. |
| for and on behalf of |
| Chartered Accountants & Statutory Auditor |
| Portland House |
| 11-13 Station Road |
| Kettering |
| Northamptonshire |
| NN15 7HH |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| CONSOLIDATED INCOME STATEMENT |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| TURNOVER | 3 | 3,350,741 | 3,342,920 |
| Cost of sales | (512,580 | ) | (519,900 | ) |
| GROSS PROFIT | 2,838,161 | 2,823,020 |
| Administrative expenses | (2,717,923 | ) | (2,167,487 | ) |
| 120,238 | 655,533 |
| Other operating income | 14,100 | 11,687 |
| OPERATING PROFIT | 5 | 134,338 | 667,220 |
| Interest receivable and similar income | 7 | 1,282 |
| 134,345 | 668,502 |
| Interest payable and similar expenses | 6 | (61,947 | ) | (226,230 | ) |
| PROFIT BEFORE TAXATION | 72,398 | 442,272 |
| Tax on profit | 7 | (71,089 | ) | (103,340 | ) |
| PROFIT FOR THE FINANCIAL YEAR |
| Profit attributable to: |
| Owners of the parent | 1,309 | 338,932 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| CONSOLIDATED OTHER COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| PROFIT FOR THE YEAR | 1,309 | 338,932 |
| OTHER COMPREHENSIVE INCOME |
| Deferred tax movement | 8,686 | 72,345 |
| Income tax relating to other comprehensive income |
- |
- |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
8,686 |
72,345 |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
9,995 |
411,277 |
| Total comprehensive income attributable to: |
| Owners of the parent | 9,995 | 411,277 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| CONSOLIDATED BALANCE SHEET |
| 31ST MARCH 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 | - | 249,048 |
| Tangible assets | 11 | 9,402,758 | 9,135,260 |
| Investments | 12 | - | - |
| 9,402,758 | 9,384,308 |
| CURRENT ASSETS |
| Stocks | 13 | 13,933 | 25,300 |
| Debtors | 14 | 308,258 | 455,357 |
| Cash at bank | 372,990 | 559,875 |
| 695,181 | 1,040,532 |
| CREDITORS |
| Amounts falling due within one year | 15 | (2,823,017 | ) | (832,129 | ) |
| NET CURRENT (LIABILITIES)/ASSETS | (2,127,836 | ) | 208,403 |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
7,274,922 |
9,592,711 |
| CREDITORS |
| Amounts falling due after more than one year |
16 |
- |
(2,250,000 |
) |
| PROVISIONS FOR LIABILITIES | 19 | (589,403 | ) | (602,481 | ) |
| ACCRUALS AND DEFERRED INCOME | 20 | (117,646 | ) | (132,352 | ) |
| NET ASSETS | 6,567,873 | 6,607,878 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| CONSOLIDATED BALANCE SHEET - continued |
| 31ST MARCH 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| CAPITAL AND RESERVES |
| Called up share capital | 21 | 79,000 | 79,000 |
| Revaluation reserve | 22 | 4,375,598 | 4,366,912 |
| Retained earnings | 22 | 2,113,275 | 2,161,966 |
| SHAREHOLDERS' FUNDS | 6,567,873 | 6,607,878 |
| The financial statements were approved by the Board of Directors on 8th November 2017 and were signed on its |
| behalf by: |
| M T Baker - Director |
| S A Robinson - Director |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| COMPANY BALANCE SHEET |
| 31ST MARCH 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Stocks | 13 |
| Debtors | 14 |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 15 | ( |
) | ( |
) |
| NET CURRENT LIABILITIES | ( |
) | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
16 |
( |
) |
| PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
| ACCRUALS AND DEFERRED INCOME | 20 | ( |
) | ( |
) |
| NET ASSETS |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| COMPANY BALANCE SHEET - continued |
| 31ST MARCH 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| CAPITAL AND RESERVES |
| Called up share capital | 21 |
| Revaluation reserve | 22 |
| Retained earnings | 22 |
| SHAREHOLDERS' FUNDS |
| Company's profit for the financial year | 138,041 | 261,802 |
| The financial statements were approved by the Board of Directors on behalf by: |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1st April 2015 | 79,000 | 1,993,034 | 4,294,567 | 6,366,601 |
| Changes in equity |
| Dividends | - | (170,000 | ) | - | (170,000 | ) |
| Total comprehensive income | - | 338,932 | 72,345 | 411,277 |
| Balance at 31st March 2016 | 79,000 | 2,161,966 | 4,366,912 | 6,607,878 |
| Changes in equity |
| Dividends | - | (50,000 | ) | - | (50,000 | ) |
| Total comprehensive income | - | 1,309 | 8,686 | 9,995 |
| Balance at 31st March 2017 | 79,000 | 2,113,275 | 4,375,598 | 6,567,873 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| COMPANY STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| Called up |
| share | Retained | Revaluation | Total |
| capital | earnings | reserve | equity |
| £ | £ | £ | £ |
| Balance at 1st April 2015 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31st March 2016 |
| Changes in equity |
| Dividends | - | ( |
) | - | ( |
) |
| Total comprehensive income | - |
| Balance at 31st March 2017 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 2017 | 2016 |
| Notes | £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 2,687,853 | 785,316 |
| Interest paid | (61,947 | ) | (226,230 | ) |
| Tax paid | (94,722 | ) | (91,744 | ) |
| Net cash from operating activities | 2,531,184 | 467,342 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (418,076 | ) | (222,881 | ) |
| Sale of tangible fixed assets | - | 4,200 |
| Interest received | 7 | 1,282 |
| Net cash from investing activities | (418,069 | ) | (217,399 | ) |
| Cash flows from financing activities |
| Loan repayments in year | (2,250,000 | ) | (1,036,361 | ) |
| Equity dividends paid | (50,000 | ) | (170,000 | ) |
| Net cash from financing activities | (2,300,000 | ) | (1,206,361 | ) |
| Decrease in cash and cash equivalents | (186,885 | ) | (956,418 | ) |
| Cash and cash equivalents at beginning of year |
2 |
559,875 |
1,516,293 |
| Cash and cash equivalents at end of year |
2 |
372,990 |
559,875 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 2017 | 2016 |
| £ | £ |
| Profit before taxation | 72,398 | 442,272 |
| Depreciation charges | 184,245 | 179,461 |
| Profit on disposal of fixed assets | - | (4,200 | ) |
| Impairment of goodwill | 215,381 | - |
| Government grants | (14,706 | ) | (14,706 | ) |
| Finance costs | 61,947 | 226,230 |
| Finance income | (7 | ) | (1,282 | ) |
| 519,258 | 827,775 |
| Decrease/(increase) in stocks | 11,367 | (1,300 | ) |
| Decrease in trade and other debtors | 147,099 | 36,117 |
| Increase/(decrease) in trade and other creditors | 2,010,129 | (77,276 | ) |
| Cash generated from operations | 2,687,853 | 785,316 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in |
| respect of these Balance Sheet amounts: |
| Year ended 31st March 2017 |
| 31/3/17 | 1/4/16 |
| £ | £ |
| Cash and cash equivalents | 372,990 | 559,875 |
| Year ended 31st March 2016 |
| 31/3/16 | 1/4/15 |
| £ | £ |
| Cash and cash equivalents | 559,875 | 1,516,293 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 1. | STATUTORY INFORMATION |
| Phoenix Leisure Management Limited is a |
| Wales. The company's registered number and registered office address can be found on the General |
| Information page. |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The preparation of financial statements in compliance with FRS 102 requires the use of certain critical |
| accounting estimates. It also requires management to exercise judgement in applying the company's |
| accounting policies. |
| The financial statements have been prepared on a going concern basis not withstanding that at 31 March |
| 2017 the group had net current liabilities. The directors believe this basis to be appropriate and have a |
| reasonable expectation that the company and the overall group have adequate resources to continue in |
| operational existence for the foreseeable future. |
| Basis of consolidation |
| The consolidated financial statements incorporate the financial statements of the company and all group |
| undertakings. These are adjusted, where appropriate, to conform to group accounting policies. |
| Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised |
| and written off over five years from the year of acquisition. The results of companies acquired or disposed |
| of are included in the profit and loss account after or up to the date that control passes respectively. As a |
| consolidated profit and loss account is published, a separate profit and loss account for the parent |
| company is omitted from the group financial statements by virtue of section 408 of the Companies Act |
| 2006. |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, |
| rebates, value added tax and other sales taxes. |
| Rendering of services |
| Turnover from the rendering of services is recognised when the company has performed its obligations. |
| 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. |
| Goodwill |
| Goodwill, being the amount paid in connection with the acquisition of a business in 2014 and in 2003, has |
| been fully impaired during the year. |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 2. | ACCOUNTING POLICIES - continued |
| Tangible fixed assets |
| Short leasehold | - |
| Long leasehold | - |
| Plant and machinery | - |
| Fixtures and fittings | - |
| Computer equipment | - |
| Leasehold property, together with plant and machinery and associated fixtures and fittings represent the |
| company's capital investment in the Kettering Conference Centre complex. The carrying value is reviewed |
| periodically to ensure it is not materially different to fair value. |
| Repairs and maintenance costs are charged to the Statement of Comprehensive Income. |
| Government grants |
| Government grants in relation to tangible fixed assets are credited to the income statement over the useful |
| lives of the related assets. |
| Stocks |
| Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete |
| and slow moving items. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
| Hire purchase and leasing commitments |
| Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of |
| the lease. |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 2. | ACCOUNTING POLICIES - continued |
| Pension costs and other post-retirement benefits |
| The group operates a defined contribution pension scheme. Contributions payable to the group's pension |
| scheme are charged to profit or loss in the period to which they relate. |
| Financial instruments |
| The company is party to only basic financial instruments such as cash, trade debtors and creditors, and |
| bank loans. Instruments such as trade debtors and creditors are initially recognised at their transaction |
| cost and reviewed at the year end for impairment. Debt instruments not repayable on demand or due |
| within one year, such as the bank loan, are measured at amortised cost using the effective interest rate. |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by geographical market is given below: |
| 2017 | 2016 |
| £ | £ |
| United Kingdom |
| 4. | EMPLOYEES AND DIRECTORS |
| 2017 | 2016 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average monthly number of employees during the year was as follows: |
| 2017 | 2016 |
| Directors | 3 | 3 |
| Administration | 14 | 6 |
| Operational | 87 | 88 |
| The average number of employees by undertakings that were proportionately consolidated during the year |
| was 104 . |
| 2017 | 2016 |
| £ | £ |
| Directors' remuneration |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 2017 | 2016 |
| £ | £ |
| Hire of plant and machinery |
| Depreciation - owned assets |
| Profit on disposal of fixed assets | ( |
) |
| Goodwill amortisation |
| Auditors fees |
| Impairment - Goodwill |
| Government grants | ( |
) |
| Capital grants | ( |
) |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 2017 | 2016 |
| £ | £ |
| Bank loan interest |
| Other loan interest |
| Interest on overdue taxation |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 2017 | 2016 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) |
| Tax on profit |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 7. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference |
| is explained below: |
| 2017 | 2016 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) | ( |
) |
| Depreciation in excess of capital allowances |
| Deferred tax | ( |
) |
| Total tax charge | 71,089 | 103,340 |
| Tax effects relating to effects of other comprehensive income |
| 2017 |
| Gross | Tax | Net |
| £ | £ | £ |
| Deferred tax movement | - | 8,686 |
| 2016 |
| Gross | Tax | Net |
| £ | £ | £ |
| Deferred tax movement | - | 72,345 |
| Deferred tax included within "tax on profit on ordinary activities" represents timing differences between non |
| allowable depreciation and allowable capital allowances. |
| Deferred tax included with Other Comprehensive Income represents potential capital gains tax should the |
| property be sold in the future. |
| There is no expiry date on timing differences, unused tax losses or tax credits. There are no special |
| circumstances affecting the current year tax charge and none are expected to affect future periods. |
| 8. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is |
| not presented as part of these financial statements. |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 9. | DIVIDENDS |
| 2017 | 2016 |
| £ | £ |
| Ordinary shares of £1 each |
| Final |
| Interim |
| 10. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1st April 2016 |
| and 31st March 2017 | 591,332 |
| AMORTISATION |
| At 1st April 2016 | 342,284 |
| Amortisation for year | 33,667 |
| Impairments | 215,381 |
| At 31st March 2017 | 591,332 |
| NET BOOK VALUE |
| At 31st March 2017 |
| At 31st March 2016 | 249,048 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 10. | INTANGIBLE FIXED ASSETS - continued |
| Company |
| Goodwill |
| £ |
| COST |
| At 1st April 2016 |
| and 31st March 2017 | 27,335 |
| AMORTISATION |
| At 1st April 2016 | 10,934 |
| Amortisation for year | 5,467 |
| Impairments | 10,934 |
| At 31st March 2017 | 27,335 |
| NET BOOK VALUE |
| At 31st March 2017 |
| At 31st March 2016 | 16,401 |
| 11. | TANGIBLE FIXED ASSETS |
| Group |
| Short | Long | Plant and |
| leasehold | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1st April 2016 | 218,245 | 9,042,887 | 411,722 |
| Additions | - | 367,978 | 36,196 |
| Reclassification/transfer | (218,245 | ) | 1,079,834 | (447,918 | ) |
| At 31st March 2017 | - | 10,490,699 | - |
| DEPRECIATION |
| At 1st April 2016 | 108,345 | 363,510 | 188,692 |
| Charge for year | 8,731 | 72,872 | 43,978 |
| Reclassification/transfer | (117,076 | ) | 651,559 | (232,670 | ) |
| At 31st March 2017 | - | 1,087,941 | - |
| NET BOOK VALUE |
| At 31st March 2017 | - | 9,402,758 | - |
| At 31st March 2016 | 109,900 | 8,679,377 | 223,030 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 11. | TANGIBLE FIXED ASSETS - continued |
| Group |
| Fixtures |
| and | Computer |
| fittings | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1st April 2016 | 372,396 | 27,373 | 10,072,623 |
| Additions | 13,902 | - | 418,076 |
| Reclassification/transfer | (386,298 | ) | (27,373 | ) | - |
| At 31st March 2017 | - | - | 10,490,699 |
| DEPRECIATION |
| At 1st April 2016 | 251,916 | 24,900 | 937,363 |
| Charge for year | 24,038 | 959 | 150,578 |
| Reclassification/transfer | (275,954 | ) | (25,859 | ) | - |
| At 31st March 2017 | - | - | 1,087,941 |
| NET BOOK VALUE |
| At 31st March 2017 | - | - | 9,402,758 |
| At 31st March 2016 | 120,480 | 2,473 | 9,135,260 |
| In March 2017 a firm of valuation experts assessed the fair value of the company's trading premises. The |
| experts valued the property in its entirety, including fixtures & fittings and plant & machinery. The directors, |
| therefore, decided to transfer the other classes of fixed asset into 'Long Leasehold' to better reflect this in |
| anticipation of the property being reclassed as an Investment Property on 1 April 2017. |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 11. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Short | Long | Plant and |
| leasehold | leasehold | machinery |
| £ | £ | £ |
| COST |
| At 1st April 2016 |
| Additions |
| Reclassification/transfer | ( |
) | ( |
) |
| At 31st March 2017 |
| DEPRECIATION |
| At 1st April 2016 |
| Charge for year |
| Reclassification/transfer | ( |
) | ( |
) |
| At 31st March 2017 |
| NET BOOK VALUE |
| At 31st March 2017 |
| At 31st March 2016 |
| Fixtures |
| and | Computer |
| fittings | equipment | Totals |
| £ | £ | £ |
| COST |
| At 1st April 2016 |
| Additions |
| Reclassification/transfer | ( |
) | ( |
) |
| At 31st March 2017 |
| DEPRECIATION |
| At 1st April 2016 |
| Charge for year |
| Reclassification/transfer | ( |
) | ( |
) |
| At 31st March 2017 |
| NET BOOK VALUE |
| At 31st March 2017 |
| At 31st March 2016 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 11. | TANGIBLE FIXED ASSETS - continued |
| Company |
| Tangible fixed assets were transferred during the year from its subsidiary company Balance Leisure |
| Kettering Limited. |
| In March 2017 a firm of valuation experts assessed the fair value of the company's trading premises. The |
| experts valued the property in its entirety, including fixtures & fittings and plant & machinery. The directors, |
| therefore, decided to transfer the other classes of fixed asset into 'Long Leasehold' to better reflect this in |
| anticipation of the property being reclassed as an Investment Property on 1 April 2017. |
| 12. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1st April 2016 |
| and 31st March 2017 |
| NET BOOK VALUE |
| At 31st March 2017 |
| At 31st March 2016 |
| The group or the company's investments at the Balance Sheet date in the share capital of companies |
| include the following: |
| Subsidiary |
| Registered office: |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2017 | 2016 |
| £ | £ |
| Aggregate capital and reserves |
| (Loss)/profit for the year | ( |
) |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 13. | STOCKS |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Stocks | 13,933 | 25,300 |
| 14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Trade debtors | 187,268 | 184,336 |
| Other debtors | 80,711 | 59,857 |
| VAT | - | - |
| Prepayments | 40,279 | 211,164 |
| 308,258 | 455,357 |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Trade creditors | 604,779 | 291,447 |
| Amounts owed to group undertakings | 1,768,413 | - |
| Corporation tax | 75,481 | 94,722 |
| PAYE and NIC | 23,629 | 12,660 |
| VAT | 7,720 | 52,343 |
| Other creditors | 185,388 | 217,439 |
| Directors' current accounts | - | 8,280 |
| Accruals and deferred income | 157,607 | 155,238 |
| 2,823,017 | 832,129 |
| 16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Bank loans (see note 17) | - | 2,250,000 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 17. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Amounts falling due between one and two |
| years: |
| Bank loans - 1-2 years | - | 121,622 |
| Amounts falling due between two and five |
| years: |
| Bank loans - 2-5 years | - | 364,865 |
| Amounts falling due in more than five |
| years: |
| Repayable by instalments |
| Bank loans more than 5 years |
| by instalment | - | 1,763,513 | - | 1,763,513 |
| - | 1,763,513 | - | 1,763,513 |
| 18. | SECURED DEBTS |
| The following secured debts are included within creditors: |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Bank loans | - | 2,250,000 |
| The bank had a charge over the assets of the group, which was satisfied on 8 March 2017. |
| 19. | PROVISIONS FOR LIABILITIES |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Deferred tax | 589,403 | 602,481 |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 19. | PROVISIONS FOR LIABILITIES - continued |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1st April 2016 | 602,481 |
| Credit to Income Statement during year | (4,392 | ) |
| Deferred tax on revaluation | (8,686 | ) |
| Balance at 31st March 2017 | 589,403 |
| Company |
| Deferred |
| tax |
| £ |
| Balance at 1st April 2016 |
| Credit to Income Statement during year |
| Deferred tax on revaluation | (8,686 | ) |
| Balance at 31st March 2017 |
| 20. | ACCRUALS AND DEFERRED INCOME |
| Group | Company |
| 2017 | 2016 | 2017 | 2016 |
| £ | £ | £ | £ |
| Deferred government grants | 117,646 | 132,352 | 117,646 | 132,352 |
| 21. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2017 | 2016 |
| value: | £ | £ |
| Ordinary | £1 | 79,000 | 79,000 |
| The ordinary shares have full voting rights and there are no restrictions on the distribution of dividends or |
| repayment of capital. |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 22. | RESERVES |
| Group |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1st April 2016 | 2,161,966 | 4,366,912 | 6,528,878 |
| Profit for the year | 1,309 | 1,309 |
| Dividends | (50,000 | ) | (50,000 | ) |
| Deferred tax movement | - | 8,686 | 8,686 |
| At 31st March 2017 | 2,113,275 | 4,375,598 | 6,488,873 |
| Company |
| Retained | Revaluation |
| earnings | reserve | Totals |
| £ | £ | £ |
| At 1st April 2016 | 5,598,845 |
| Profit for the year |
| Dividends | ( |
) | ( |
) |
| Deferred tax movement | - | 8,686 | 8,686 |
| At 31st March 2017 | 5,695,572 |
| Revaluation reserve |
| Includes all unrealised gains on the revaluation of the property offset by the associated deferred tax. |
| Retained earnings |
| Includes cumulative realised profit and losses net of dividends paid. |
| 23. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 |
| 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related |
| party transactions with wholly owned subsidiaries within the group. |
| Transactions between group entities which have been eliminated on consolidation are not disclosed within |
| the financial statements. |
| PHOENIX LEISURE MANAGEMENT LIMITED (REGISTERED NUMBER: 02992507) |
| NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31ST MARCH 2017 |
| 23. | RELATED PARTY DISCLOSURES - continued |
| Rockport Estates Limited |
| Parent company |
| The company is a wholly owned subsidiary of Rockport Estates Limited. |
| During the year, the company received a loan from Rockport Estates Limited of £2,255,388 and repaid |
| amounts totalling £500,000. Interest of £13,025 was charged to the company. The resulting balance of |
| £1,768,413 was outstanding at the balance sheet date and is included within creditors. |
| Loans are not secured and are repayable on demand. |
| 24. | POST BALANCE SHEET EVENTS |
| On 1 April 2017 the trade of the company was transferred to Compass Contract Services (UK) Limited. |
| On the same date Compass Contract Services (UK) Limited entered into a lease with the company, for the |
| rental of the property. |
| 25. | ULTIMATE CONTROLLING PARTY |
| The ultimate controlling party is Pears Property Ventures Limited. |
| The smallest undertaking for which the company is a member and for which group financial statements |
| are prepared is Phoenix Leisure Management Limited and the largest group is Pears Property Ventures |
| Limited. |