School House Leisure Limited - Limited company accounts 18.2

REGISTERED NUMBER: 03679011 (England and Wales)

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 March 2018

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

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

P G Holland

Mrs D J Holland

Mrs P E Weston

SECRETARY:

Mrs D J Holland

REGISTERED OFFICE:

Moddershall Oaks Country Spa Retreat

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 2018.

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 statement

of comprehensive income on page 7 to the financial statements.

As shown in note 8 to the Financial Statements the directors have changed the accounting policy on certain areas

of income recognition. On a like for like basis, sales have grown by 7.3% which has resulted in an increase in the

net profit margin to 14.1%. The company has achieved a profit before tax of £675,636, which has enabled the

company's net assets to increase to £4,233,223.

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 opening of the new MADE

development in August 2018 has further enhanced the company's offering and guest experience.

The strategy of the creation of long term value for our shareholders has 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.

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 risks

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

2018

2017

%

%

Return on capital employed

18.8

17.5

Gross margin

83.4

85.0

Annualised sales growth

7.3

7.5

Net profit margin

13.9

13.1

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.

Indicators for the comparative period have been adjusted to take account of a change in accounting policy on

income recognition described in note 8 to the Financial Statements.

ON BEHALF OF THE BOARD:

P G Holland - Director

19 December 2018

The directors present their report with the financial statements of the company for the year ended 31 March 2018.

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 £0.15603 per share was paid on 31 March 2018. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2018 will be £ 151,349 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2017 to the date of this

report.

P G Holland

Mrs D J Holland

Mrs P E Weston

DISCLOSURE IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) of Companies Act 2006 (Strategic Report and

Directors' Report) Regulations 2013 to set out in the company's Strategic Report information required by

schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

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

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

19 December 2018

Opinion

We have audited the financial statements of School House Leisure Limited (the 'company') for the year ended

31 March 2018 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial

Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows,

Notes to the Financial Statements, including a summary of significant accounting policies. 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2018 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.

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 company 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 company'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

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, except to the extent

otherwise explicitly stated in our report, 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 we identify such

material inconsistencies or apparent material misstatements, we are required to determine whether there is a

material misstatement in the financial statements or a material misstatement of the other information. 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 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 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 company and its environment obtained in the course of

the audit, we have not identified material misstatements in the 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, 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.

Responsibilities of directors

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, 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 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 company or to cease operations,

or have no realistic alternative but to do so.

Auditors' 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.

Use of our report

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.

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

19 December 2018

TURNOVER

3,922,603

2,798,901

Cost of sales

652,066

546,368

GROSS PROFIT

3,270,537

2,252,533

Administrative expenses

2,475,550

2,353,513

OPERATING PROFIT/(LOSS)

4

794,987

(100,980

)

Interest receivable and similar income

-

67

794,987

(100,913

)

Interest payable and similar expenses

5

119,351

123,071

PROFIT/(LOSS) BEFORE TAXATION

675,636

(223,984

)

Tax on profit/(loss)

6

123,762

(17,505

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

551,874

(206,479

)

PROFIT/(LOSS) FOR THE YEAR

551,874

(206,479

)

OTHER COMPREHENSIVE INCOME

Revaluation property uplift

172,131

-

Income tax relating to other comprehensive income

65,000

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

237,131

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(206,479

)

Note

Prior year adjustment

8

(683,449

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

105,556

FIXED ASSETS

Tangible assets

9

9,465,715

8,806,104

8,323,422

CURRENT ASSETS

Stocks

10

90,498

79,621

61,598

Debtors

11

241,652

193,326

13,049

Cash at bank and in hand

103,289

335,006

102,686

435,439

607,953

177,333

CREDITORS

Amounts falling due within one year

12

(1,722,504

)

(1,944,020

)

(1,215,639

)

NET CURRENT LIABILITIES

(1,287,065

)

(1,336,067

)

(1,038,306

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,178,650

7,470,037

7,285,116

CREDITORS

Amounts falling due after more than one year

13

(3,631,127

)

(3,566,720

)

(3,105,232

)

PROVISIONS FOR LIABILITIES

17

(314,300

)

(307,750

)

(298,500

)

NET ASSETS

4,233,223

3,595,567

3,881,384

CAPITAL AND RESERVES

Called up share capital

18

970,000

970,000

970,000

Revaluation reserve

19

2,336,472

2,099,341

2,099,341

Retained earnings

19

926,751

526,226

807,793

SHAREHOLDERS' FUNDS

4,233,223

3,595,567

3,877,134

The financial statements were approved by the Board of Directors on 19 December 2018 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 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

Prior year adjustment

-

(683,449

)

-

(683,449

)

As restated

970,000

526,226

2,099,341

3,595,567

Changes in equity

Dividends

-

(151,349

)

-

(151,349

)

Total comprehensive income

-

551,874

237,131

789,005

Balance at 31 March 2018

970,000

926,751

2,336,472

4,233,223

Cash flows from operating activities

Cash generated from operations

1

936,640

853,699

Interest paid

(107,401

)

(112,832

)

Interest element of hire purchase payments paid

(11,950

)

(10,239

)

Tax paid

(69,696

)

(19,596

)

Net cash from operating activities

747,593

711,032

Cash flows from investing activities

Purchase of tangible fixed assets

(592,470

)

(551,942

)

Sale of tangible fixed assets

833

-

Interest received

-

67

Net cash from investing activities

(591,637

)

(551,875

)

Cash flows from financing activities

New loans in year

-

3,700,000

Loan repayments in year

(132,143

)

(3,305,457

)

New hire purchase contracts

-

156,850

Capital repayments in year

(84,718

)

(79,266

)

Amount introduced by directors

151,349

162,673

Amount withdrawn by directors

(170,812

)

(486,549

)

Equity dividends paid

(151,349

)

(75,088

)

Net cash from financing activities

(387,673

)

73,163

(Decrease)/increase in cash and cash equivalents

(231,717

)

232,320

Cash and cash equivalents at beginning of year

2

335,006

102,686

Cash and cash equivalents at end of year

2

103,289

335,006

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2018

2017

as restated

£

£

Profit/(loss) before taxation

675,636

(223,984

)

Depreciation charges

103,490

69,259

Loss on disposal of fixed assets

667

-

Finance costs

119,351

123,071

Finance income

-

(67

)

899,144

(31,721

)

Increase in stocks

(10,877

)

(18,023

)

Decrease/(increase) in trade and other debtors

21,401

(160,681

)

Increase in trade and other creditors

26,972

1,064,124

Cash generated from operations

936,640

853,699

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in

respect of these Statement of Financial Position amounts:

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

103,289

335,006

Year ended 31 March 2017

31.3.17

1.4.16

as restated

£

£

Cash and cash equivalents

335,006

102,686

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 statement of financial position date.