School House Leisure Limited - Limited company accounts 17.3

REGISTERED NUMBER: 03679011 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 March 2017

for

School House Leisure Limited

Trading as

Moddershall Oaks

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

P G Holland

Mrs D J Holland

Ms P E Holland

SECRETARY:

Mrs D J Holland

REGISTERED OFFICE:

Moddershall Oaks

Moddershall

Stone

Staffordshire

ST15 8TG

REGISTERED NUMBER:

03679011 (England and Wales)

AUDITORS:

Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

The directors present their strategic report for the year ended 31 March 2017.

REVIEW OF BUSINESS

Development, performance and financial position:

The directors are pleased to report that the company has experienced a successful year and the financial health

of the company has continued to improve. The results of the company for the year are set out in the Income

Statement on page 8 to the financial statements.

Sales have grown by 7.5% which has resulted in an increase in the gross profit margin to 85%. The company has

achieved a profit before tax of £625,697, which has enabled the company's net assets to increase to £4,279,016.

The company has continued to strengthen key management personnel which the directors feel will benefit the

company going forward. The outlook for the company is positive and the company's directors believe that the

company has sufficient strength to be able to continue successfully in the future.

The goal of creation of long term value for our shareholders have not changed since incorporation. The directors

believe long term value is achieved by sales growth, profitability, cash generation and strong return on capital

employed. These shared views drive decision making and behaviour in the Company with the financial objectives

aligned and focus on four key objectives:

- Increasing revenue;

- Improving operating margins;

- Maximising return on capital employed;

- Maximising free cash flow.

These objectives are underpinned by considerable investment in fixed assets over the next 18 months which the

directors feel will complement the site and enhance guest experience.

PRINCIPAL RISKS AND UNCERTAINTIES

The objectives of the company are to manage its financial risk and to minimise the adverse effects of

fluctuations in the financial markets on its financial assets and liabilities, on reported profitability and on its

cash flows. The main risks associated with the company's financial assets and liabilities are set out below:

Interest rate risk

The company finances its operations through a mixture of retained profits and external borrowings. The external

borrowings are at floating interest rates.

Liquidity risk

The company aims to mitigate liquidity risk by managing cash generated by its operations. Expenditure is closely

tracked to budgets.

Brexit risk

Brexit risks will be minimised as much as possible as and when certainty is gained from the necessary

government bodies.

KEY PERFORMANCE INDICATORS

2017

2016

%

%

Return on capital employed

17.5

21.1

Gross margin

85.0

84.2

Annualised sales growth

7.5

19.7

Net profit margin

13.1

15.0

Return on capital employed is operating profit as a percentage of equity shareholders' funds.

Gross margin is a gross profit as a percentage of turnover.

Annualised sales growth is the annual increase in revenue as a percentage of revenue from the prior year.

Net profit margin is profit after tax as a percentage of turnover.

ON BEHALF OF THE BOARD:

P G Holland - Director

14 December 2017

The directors present their report with the financial statements of the company for the year ended 31 March 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a hotel, leisure, tourism and events

facilities.

DIVIDENDS

An interim dividend of 0.05734 per share was paid on 31 March 2017. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2017 will be £ 75,088 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2016 to the date of this

report.

P G Holland

Mrs D J Holland

Ms P E Holland

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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 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 transactions and disclose with reasonable accuracy at any time the financial position of the

company 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 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 company's auditors are unaware, and each director has taken all the steps that

he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit

information and to establish that the company's auditors are aware of that information.

AUDITORS

On 10 March 2017, the audit business of Mitten Clarke Limited was transferred to Mitten Clarke Audit Limited

who succeeded to the office as statutory auditor of the company. The audit report on the financial statements

has been issued by the successor firm, Mitten Clarke Audit Limited.

Mitten Clarke Audit Limited, has indicated its willingness to continue in office and will be proposed for

re-appointment in accordance with section 485 Companies Act 2006

ON BEHALF OF THE BOARD:

P G Holland - Director

14 December 2017

We have audited the financial statements of School House Leisure Limited for the year ended 31 March 2017 on

pages eight to twenty four. 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

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for 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 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 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 company's affairs as at 31 March 2017 and of its 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 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 company and its environment, we have not

identified any material misstatements in the Strategic Report or the Report of the Directors.

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, 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.

Adam Clarke BA FCA (Senior Statutory Auditor)

for and on behalf of Mitten Clarke Audit Limited

Statutory Auditors

The Glades

Festival Way

Stoke on Trent

Staffordshire

ST1 5SQ

14 December 2017

TURNOVER

3,648,583

3,393,565

Cost of sales

546,368

534,803

GROSS PROFIT

3,102,215

2,858,762

Administrative expenses

2,353,514

2,041,094

OPERATING PROFIT

4

748,701

817,668

Interest receivable and similar income

67

-

748,768

817,668

Interest payable and similar expenses

5

123,071

274,010

PROFIT BEFORE TAXATION

625,697

543,658

Tax on profit

6

148,727

36,095

PROFIT FOR THE FINANCIAL YEAR

476,970

507,563

PROFIT FOR THE YEAR

476,970

507,563

OTHER COMPREHENSIVE INCOME

Revaluation property uplift

-

214,334

Income tax relating to other comprehensive income

-

(22,000

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

192,334

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

476,970

699,897

FIXED ASSETS

Tangible assets

8

8,806,104

8,323,422

CURRENT ASSETS

Stocks

9

79,621

61,598

Debtors

10

129,638

13,049

Cash at bank and in hand

335,006

102,686

544,265

177,333

CREDITORS

Amounts falling due within one year

11

1,127,133

1,215,639

NET CURRENT LIABILITIES

(582,868

)

(1,038,306

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,223,236

7,285,116

CREDITORS

Amounts falling due after more than one year

12

(3,566,720

)

(3,109,482

)

PROVISIONS FOR LIABILITIES

16

(377,500

)

(298,500

)

NET ASSETS

4,279,016

3,877,134

CAPITAL AND RESERVES

Called up share capital

17

970,000

970,000

Revaluation reserve

18

2,099,341

2,099,341

Retained earnings

18

1,209,675

807,793

SHAREHOLDERS' FUNDS

4,279,016

3,877,134

The financial statements were approved by the Board of Directors on 14 December 2017 and were signed on its behalf by:

P G Holland - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2015

970,000

544,630

1,907,007

3,421,637

Changes in equity

Dividends

-

(244,400

)

-

(244,400

)

Total comprehensive income

-

507,563

192,334

699,897

Balance at 31 March 2016

970,000

807,793

2,099,341

3,877,134

Changes in equity

Dividends

-

(75,088

)

-

(75,088

)

Total comprehensive income

-

476,970

-

476,970

Balance at 31 March 2017

970,000

1,209,675

2,099,341

4,279,016

Cash flows from operating activities

Cash generated from operations

1

853,698

1,100,611

Interest paid

(112,832

)

(264,433

)

Interest element of hire purchase payments paid

(10,239

)

(9,577

)

Tax paid

(19,595

)

(7,160

)

Net cash from operating activities

711,032

819,441

Cash flows from investing activities

Purchase of tangible fixed assets

(551,942

)

(131,147

)

Interest received

67

-

Net cash from investing activities

(551,875

)

(131,147

)

Cash flows from financing activities

New loans in year

3,700,000

-

Loan repayments in year

(3,305,457

)

(295,889

)

New hire purchase contracts

156,850

-

Capital repayments in year

(79,266

)

(71,708

)

Amount introduced by directors

162,673

-

Amount withdrawn by directors

(486,549

)

-

Equity dividends paid

(75,088

)

(244,400

)

Net cash from financing activities

73,163

(611,997

)

Increase in cash and cash equivalents

232,320

76,297

Cash and cash equivalents at beginning of year

2

102,686

26,389

Cash and cash equivalents at end of year

2

335,006

102,686

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2017

2016

£

£

Profit before taxation

625,697

543,658

Depreciation charges

69,259

67,845

Finance costs

123,071

274,010

Finance income

(67

)

-

817,960

885,513

Increase in stocks

(18,023

)

(9,030

)

(Increase)/decrease in trade and other debtors

(118,446

)

1,018

Increase in trade and other creditors

172,207

223,110

Cash generated from operations

853,698

1,100,611

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 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

335,006

102,686

Year ended 31 March 2016

31.3.16

1.4.15

£

£

Cash and cash equivalents

102,686

44,888

Bank overdrafts

-

(18,499

)

102,686

26,389

1.	STATUTORY INFORMATION

School House Leisure Limited is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the Company Information

page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with 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 as modified by the revaluation of certain assets.

The financial statements have been prepared on the assumption that the company is able to carry on

business as a going concern, which the directors consider appropriate having regard to the company's

current and expected performance.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the amounts reported. These estimates and judgements are continually reviewed

and are based on experience and other factors, including expectations of future events that are believed

to be reasonable under the circumstances.

The judgements (apart from those involving estimations) that management has made in the process of

applying the entity's accounting policies and that have the most significant effect on the amounts

recognised in the financial statements are as follows:

Estimated useful lives and residual values of fixed assets

Depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed

appropriate by the directors. Estimated useful lives and residual values are reviewed annually and

revised as appropriate. Revisions take into account estimated useful lives used by other companies

operating in the sector and actual asset lives and residual values, as evidenced by disposals during current

and prior accounting periods.

Turnover

Turnover is stated net of VAT and discounts. Turnover from the supply of services represents the value of

services provided under contracts, to the extent that there is a right to consideration, and is recognised

at the date of payment. For venue income, turnover is recognised when this is provided. Where

payments are received from customers in advance of services being provided, the amounts are recorded

as Deferred Income and included as part of Creditors due within one year.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

not provided

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33% on reducing balance

Buildings are not depreciated on the basis that the company has a policy and practice of regular

maintenance and repair which is charged to the profit and loss account such that the previous assessed

standard of performance is maintained. The practice of regularly maintaining the property is particularly

critical in the company's industry. Furthermore, residual values are considered to be so high that any

depreciation is unlikely to be material.

Stocks

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

and slow moving items.

Financial instruments

The company recognises financial instruments when it becomes party to the contractual arrangements of

the instrument. Financial instruments are de-recognised when they are discharged or when the

contractual terms expire. The company's accounting policies in respect of financial instruments

transaction are explained below:

Financial assets

The company classifies all of its financial assets as loans and receivables. Loans and receivables are

non-derivative financial assets or determinable payments that are not quoted in an active market. They

are initially recognised at fair value plus transaction costs that are directly attributable to their

acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate

method, less provision for impairment.

Financial liabilities

The company classifies all of its financial liabilities at amortised cost. Financial liabilities at amortised

cost are initially recognised at fair value net of any transaction costs directly attributable to the issue of

the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the

effective interest rate method, which ensure that any interest expense over the period to repayment is at

a constant rate on the balance of the liability carried into the balance sheet.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet.

Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held

under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the

shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of

the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's

pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

1,363,424

1,190,760

Social security costs

100,750

88,459

Other pension costs

2,417

2,423

1,466,591

1,281,642

The average monthly number of employees during the year was as follows:

2017

2016

Directors

3

2

Staff

90

80

93

82

2017

2016

£

£

Directors' remuneration

79,584

89,869

Directors' pension contributions to money purchase schemes

357

2,423