Leehand Limited - Limited company accounts 17.3

REGISTERED NUMBER: 04544306 (England and Wales)

Leehand Limited

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 September 2017

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Mrs HE Walker

FM Cochrane

AS Glassbrook

SECRETARY:

FM Cochrane

REGISTERED OFFICE:

Stanley House

Off Preston New Road

MELLOR

Lancashire

BB2 7NP

REGISTERED NUMBER:

04544306 (England and Wales)

AUDITORS:

McMillan & Co LLP

Chartered Accountants and

Statutory Auditor

28 Eaton Avenue

Matrix Office Park

Buckshaw Village

Chorley

Lancashire

PR7 7NA

The directors present their strategic report of the company and the group for the year ended

30 September 2017.

REVIEW OF BUSINESS

Sales for the year ended 30 September 2017 increased by 5.6% to £3.9m. The increase reflected a good

performance in accommodation and spa offset by a reduction in catered events and conference and sale of

development land.

Food and beverage revenues were generally consistent in the year.

The gross profit margin increased to 37.2% from 36.0% and the group recorded an EBITDA profit in the year

of £188,652 (2016: profit £62,245).

The operating loss decreased to £362,625 from £592,504 and the loss on ordinary activities before taxation

reduced to £362,607 from £591,969.

KEY PERFORMANCE INDICATORS

Financial

Gross profit margin 37.2% (2016: 36.0%) calculated as Gross Profit/Turnover

EBITDA £188,652 (2016: £62,245) calculated as profit before interest, tax, depreciation and amortisation

Non-financial

Operational headcount 119 (2016: 123)

PRINCIPAL RISKS AND UNCERTAINTIES

In 2017, the challenge will lie in increasing revenues and margins, controlling payroll costs and buildings

overhead, while maintaining the high levels of service expected by our customers. Further, inflationary

pressures in the areas of food cost and utility will put increased pressure on achieving the operating profit.

ON BEHALF OF THE BOARD:

FM Cochrane - Director

29 January 2018

The directors present their report with the financial statements of the company and the group for the year

ended 30 September 2017.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of property development, letting of

investment properties and operating a hotel, spa and restaurant.

DIVIDENDS

No dividends will be distributed for the year ended 30 September 2017.

FUTURE DEVELOPMENTS

There are no future developments under review.

DIRECTORS

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

this report.

Mrs HE Walker

FM Cochrane

AS Glassbrook

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 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 group's auditors are aware of that information.

AUDITORS

The auditors, McMillan & Co LLP, are deemed to be reappointed under section 487(2) of the Companies Act

2006.

ON BEHALF OF THE BOARD:

FM Cochrane - Director

29 January 2018

Opinion

We have audited the financial statements of Leehand Limited (the 'parent company') and its subsidiaries (the

'group') for the year ended 30 September 2017 on pages seven to twenty one. The financial reporting

framework that has been applied in their preparation is applicable law and United Kingdom Accounting

Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 September 2017 and of the group's loss 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditors'

responsibilities for the audit of the financial statements section of our report. We are independent of the

group in accordance with the ethical requirements that are relevant to our audit of the financial statements in

the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the

Group Strategic Report and the Report of the Directors, but does not include the financial statements and our

Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form

of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and,

in doing so, consider whether the other information is materially inconsistent with the financial statements or

our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work

we have performed, we conclude that there is a material misstatement of this other information, we are

required to report that fact. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the 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

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment

obtained in the course of the audit, we have not identified material misstatements in the Group Strategic

Report or the Report of the Directors.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair

view, and for such internal control as the directors determine necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent

company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless the directors either intend to liquidate the group or the

parent company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,

they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial

Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our

Report of the Auditors.

Neil McMillan FCA (Senior Statutory Auditor)

for and on behalf of McMillan & Co LLP

Chartered Accountants and

Statutory Auditor

28 Eaton Avenue

Matrix Office Park

Buckshaw Village

29 January 2018

TURNOVER

3,881,019

3,674,819

Cost of sales

2,435,759

2,351,698

GROSS PROFIT

1,445,260

1,323,121

Administrative expenses

1,825,808

1,934,698

(380,548

)

(611,577

)

Other operating income

17,923

19,073

OPERATING LOSS

4

(362,625

)

(592,504

)

Interest receivable and similar income

18

535

LOSS BEFORE TAXATION

(362,607

)

(591,969

)

Tax on loss

5

-

-

LOSS FOR THE FINANCIAL YEAR

(362,607

)

(591,969

)

Loss attributable to:

Owners of the parent

(362,607

)

(591,969

)

LOSS FOR THE YEAR

(362,607

)

(591,969

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(362,607

)

(591,969

)

Total comprehensive income attributable to:

Owners of the parent

(362,607

)

(591,969

)

FIXED ASSETS

Tangible assets

7

8,231,796

8,561,123

Investments

8

-

-

Investment property

9

128,657

128,657

8,360,453

8,689,780

CURRENT ASSETS

Stocks

10

621,038

658,459

Debtors

11

472,731

213,789

Cash at bank and in hand

719,880

950,718

1,813,649

1,822,966

CREDITORS

Amounts falling due within one year

12

1,027,720

1,003,757

NET CURRENT ASSETS

785,929

819,209

TOTAL ASSETS LESS CURRENT LIABILITIES

9,146,382

9,508,989

CAPITAL AND RESERVES

Called up share capital

13

181,110

181,110

Share premium

14

13,070,939

13,070,939

Capital reserve

14

991,978

991,978

Fair value reserve

14

78,895

78,895

Retained earnings

14

(5,176,540

)

(4,813,933

)

SHAREHOLDERS' FUNDS

9,146,382

9,508,989

The financial statements were approved by the Board of Directors on 29 January 2018 and were signed on its

behalf by:

FM Cochrane - Director

FIXED ASSETS

Tangible assets

7

-

-

Investments

8

16,482,453

16,482,453

Investment property

9

-

-

16,482,453

16,482,453

CURRENT ASSETS

Debtors

11

245,225

245,225

NET CURRENT ASSETS

245,225

245,225

TOTAL ASSETS LESS CURRENT LIABILITIES

16,727,678

16,727,678

CAPITAL AND RESERVES

Called up share capital

13

181,110

181,110

Share premium

14

13,070,939

13,070,939

Retained earnings

14

3,475,629

3,475,629

SHAREHOLDERS' FUNDS

16,727,678

16,727,678

Company's profit for the financial year

-

-

The financial statements were approved by the Board of Directors on 29 January 2018 and were signed on its behalf by:

FM Cochrane - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 October 2015

181,110

(4,221,964

)

13,070,939

Changes in equity

Total comprehensive income

-

(591,969

)

-

Balance at 30 September 2016

181,110

(4,813,933

)

13,070,939

Changes in equity

Total comprehensive income

-

(362,607

)

-

Balance at 30 September 2017

181,110

(5,176,540

)

13,070,939

Fair

Capital

value

Total

reserve

reserve

equity

£

£

£

Balance at 1 October 2015

991,978

78,895

10,100,958

Changes in equity

Total comprehensive income

-

-

(591,969

)

Balance at 30 September 2016

991,978

78,895

9,508,989

Changes in equity

Total comprehensive income

-

-

(362,607

)

Balance at 30 September 2017

991,978

78,895

9,146,382

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 October 2015

181,110

3,475,629

13,070,939

16,727,678

Changes in equity

Balance at 30 September 2016

181,110

3,475,629

13,070,939

16,727,678

Changes in equity

Balance at 30 September 2017

181,110

3,475,629

13,070,939

16,727,678

Cash flows from operating activities

Cash generated from operations

1

(8,906

)

115,268

Net cash from operating activities

(8,906

)

115,268

Cash flows from investing activities

Purchase of tangible fixed assets

(221,950

)

(149,277

)

Sale of tangible fixed assets

-

(8,458

)

Sale of investment property

-

204,413

Interest received

18

535

Net cash from investing activities

(221,932

)

47,213

(Decrease)/increase in cash and cash equivalents

(230,838

)

162,481

Cash and cash equivalents at beginning of year

2

950,718

788,237

Cash and cash equivalents at end of year

2

719,880

950,718

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

2017

2016

£

£

Loss before taxation

(362,607

)

(591,969

)

Depreciation charges

551,277

654,749

Loss on disposal of fixed assets

-

53,818

Finance income

(18

)

(535

)

188,652

116,063

Decrease/(increase) in stocks

37,421

(33,216

)

Increase in trade and other debtors

(258,942

)

(3,424

)

Increase in trade and other creditors

23,963

35,845

Cash generated from operations

(8,906

)

115,268

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 30 September 2017

30/9/17

1/10/16

£

£

Cash and cash equivalents

719,880

950,718

Year ended 30 September 2016

30/9/16

1/10/15

£

£

Cash and cash equivalents

950,718

788,237

1.	STATUTORY INFORMATION

Leehand 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 General 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.

Basis of consolidation

The consolidated financial statements consolidate the accounts of Leehand Limited and its subsidiary

undertakings.

Turnover

Turnover represents sales of goods and services, excluding value added tax. Revenue from property

sales is recognised on legal completion.

Tangible fixed assets

No depreciation is provided on freehold buildings as it is the group's policy to maintain these properties

to a high standard to protect their trade and the costs of maintenance are charged to the profit and loss

account. Therefore their value to the business is not impaired by the passage of time and as a

consequence, in the opinion of the directors, any provision for depreciation would be immaterial. The

directors consider that the aggregate of their residual values is at least equal to the aggregate of their

book values. Depreciation of all other tangible assets is calculated to write down the cost less

estimated residual value by instalments over their expected useful lives. The rates and periods

generally applicable are:

Fixtures & fittings, furniture and equipment

between 10% and 33% on cost

Investment property

In accordance with Financial Reporting Standard 102, the company's properties are held for long-term

investment and are included in the Balance Sheet at their open market values. Any surplus or deficit

on revaluation of such properties is transferred to the investment property revaluation reserve.

Depreciation is not provided in respect of freehold investment properties. This policy represents a

departure from the requirements of the Companies Act, which requires depreciation to be provided on

all fixed assets. The directors consider that this policy is necessary in order that the financial

statements may give a true and fair view because current values and changes in current values are of

prime importance rather than the calculation of systematic annual depreciation.

Stocks

Work-in-progress is at the lower of cost and net realisable value. Cost includes the cost of direct

materials and legal and professional fees plus attributable overhead, where applicable. The

attributable profit on long-term contracts is recognised once their outcome can be assessed with

reasonable certainty. The profit reflects the proportion of the work on the contract completed to date.

Full provision is made for losses on all contracts in the year in which the loss is first foreseen. Other

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.

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.

Investments

Investments are held at cost less any provision for impairment in value. Investments are reviewed for

impairment if events or changes in circumstances indicate that the carrying value may not be

recoverable.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

1,852,900

1,800,173

Social security costs

126,176

117,623

Other pension costs

8,574

7,479

1,987,650

1,925,275

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

2017

2016

Management and administration

8

8

Sales and marketing

5

5

Operational

119

123

132

136

2017

2016

£

£

Directors' remuneration

13,390

13,390

4.	OPERATING LOSS

The operating loss is stated after charging:

2017

2016

£

£

Hire of plant and machinery

16,896

22,976

Depreciation - owned assets

551,277

654,749

Loss on disposal of fixed assets

-

53,818

Auditors' remuneration

4,300

4,200

Audit of these financial statements

625

600

Audit of group

4,925

4,800

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 30 September 2017 nor for the year ended

30 September 2016.

The group has an unrecognised deferred tax asset in respect of the following, calculated at 19%

(2016: 20%):

2017

2016

£

£

Unrelieved trading losses

470,100

488,024

Accelerated capital allowances

671,951

637,500

Unrecognised deferred tax asset

1,142,051

1,125,524

6.	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.