Company Registration No. 00118558 (England and Wales)
CASTLE LEISURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2018
CASTLE LEISURE LIMITED
COMPANY INFORMATION
Directors
Mr M H Andrews
Mr W J Davies
Mr J C Harris
Mr P J T Yapp
Mrs L M Morgan
Mr S D Phillips
Mrs K L Brown
Secretary
Mrs L M Morgan
Company number
00118558
Registered office
1 City Road
Cardiff
CF24 3TQ
Auditor
MHA Broomfield Alexander
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
UK
CF23 8AB
CASTLE LEISURE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 25
CASTLE LEISURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 DECEMBER 2018
- 1 -
The Directors present their strategic report for the 52 weeks ended 30 December 2018.
Business Review
Club trading performance was robust in a challenging environment. The Company is strongly cash-generative with minimal exposure to risk in relation to debtors. Cash flow is monitored daily as part of control procedures.
Trading conditions across the sector remain challenging and competitive. The Directors anticipate further consolidation within the bingo market in the current year and beyond.
Principle Risks and Uncertainties
The Company’s risk management strategy focuses on the minimisation of risks to the Company.
The Principle risks and uncertainties that could impact on the Company and the action taken to mitigate and address are detailed as follows:
Legislative
. Failure to comply with all relevant legislation, including the Gambling Act 2005 and Licencing Act 2003, could adversely impact the Company’s Operator, Premises and Personal licences. All key management and employees undergo ongoing training and certification to ensure the Company remains fully compliant. The Company maintains a strong and open relationship with the Gambling Commission and Local Authorities.
Economic
. An uncertain economic environment will impact consumer confidence and their disposable income. Our pricing and product offering is continually reviewed to match current market conditions and to improve our customer proposition.
External Events
. Events such as extreme weather conditions, natural disaster and terrorism threats could adversely affect admission levels and profitability. A risk management committee considers all recognisable risks and prepares contingency plans to minimise the impact of these events.
Continuity of Business
. Potential loss of, or damage to, individual clubs could impact continuity of trading. Insurance provisions and disaster recovery procedures are maintained to protect Company assets and information flows, to minimise any disruption to our business operations.
Liquidity
. Management actively manages the Company’s financing requirements to ensure the Company will have sufficient funds to meet its liabilities. Cash forecasts are reviewed weekly and undergo sensitivity testing.
Key risks are reviewed by management and the Board on a regular basis and, where appropriate, actions are undertaken to mitigate the key risks that are identified.
CASTLE LEISURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 2 -
Financial key performance indicators
Key performance indicators, including admissions and average spends, are monitored and interpreted by the management on a daily basis. Both measures remain ahead of industry trends and average.
Like for like admissions were 2% behind the previous year, impacted by the adverse weather conditions, with a 3% increase in spends per head.
Financial review
Company turnover was maintained at £31.9m (2017: £31.9m). On a like for like basis, turnover grew 2%.
During 2018, the Company incurred capital expenditure of £2.1m, to give a year end fixed asset valuation of £49.0m.
The profit for the 52 weeks, before taxation, amounted to £3,000,900 (2017: £3,400,285).
Current trading and outlook
The Directors anticipate further consolidation within the bingo market in the current year. We expect market conditions to stabilise for the industry.
Mrs L M Morgan
Director
15 February 2019
CASTLE LEISURE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 DECEMBER 2018
- 3 -
The directors present their report and the financial statements for the 52 weeks ended 30 December 2018.
Principal activities
The Company’s principal activity for the period was the operation of bingo clubs, the provision of electronic entertainment and bars and catering services within them. The Directors do not anticipate any likely changes in the company’s activities in the current year.
Business review
Club trading performance was robust in a challenging trading environment. The Company is strongly cash-generative with minimal exposure to risk in relation to debtors. Cash flow is monitored daily as part of control procedures.
Trading conditions across the sector were impacted by adverse weather conditions. The Directors anticipate further consolidation within the bingo market in the current year. We expect market conditions to continue to stabilise.
In the medium term, industry rationalisation and concentration will lead to opportunities for further market share gains in our regional market and beyond.
We continue to reinvest into our trading operations and implement new innovations and technologies to drive cost efficiencies and long term revenue growth.
This has led to substantive outperformance of the UK bingo market. Bootle and Corby clubs achieved all time high profit contributions in the year.
Results and dividends
The profit for the 52 weeks, after taxation, amounted to £2,291,302 (2017 - £2,831,361)
The Directors propose a final dividend of 220p per share.
Directors
The directors serving at the end of the period and their interests in the company’s issued share capital were:
Ordinary shares
of £1 each
30/12/18
31/12/17
Mark H Andrews
2,117
2,117
Wayne J Davies
2,940
2,940
Lisa Morgan
2,335
2,300
Jeffrey C Harris
32,648
31,766
Simon D Phillips
100
100
Philip J T Yapp
6,628
6,716
Kate L Brown
250
250
The Directors retiring by rotation are Philip J T Yapp, Lisa M Morgan and Kate L Brown who, being eligible, offer themselves for reappointment.
Ordinary dividends were paid in the year amounting to £972,838.
CASTLE LEISURE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 4 -
Charitable contributions
During the period the Company made charitable donations of £40,100. Additionally the company facilitates through its clubs substantial local charitable and civic fund raising. Total fund raising activities during the period generated over £60,000.
The Company has a policy of making no political donations.
Corporate social responsibility
The Company is fully committed to ensuring that the licensing objectives, as defined by the Licensing Act 2003 and Gambling Act 2005, are strictly adhered to and complied with.
The Company’s risk assessment process takes account of social environmental and ethical matters relevant to the operation of the Company. The Board seeks both to identify and assess any short or long term risks and to identify opportunities to enhance value.
The Company maintains a strong emphasis on Social Responsibility in all aspects of its operation. The Company has been recognised for its support and contribution in this area by both Gamcare and BeGambleAware.
The Company undertakes a series of projects through Business in the Community, benefiting local communities.
Financial Instruments
The Company’s principal financial instruments comprise a bank loan, overdraft and cash. The main purpose of these instruments is to finance the Company’s capital expenditure programme and working capital requirements.
No trading in financial instruments is undertaken. The Company’s borrowings are in pounds sterling and at the year end were subject to floating rates of interest.
Human Resources
The Company values the contribution that its employees make to the success of the business. Substantial investment is made in training, development and motivating staff. Particular focus is made on ensuring customer satisfaction through consistent attainment of high standards of care and service.
The involvement of employees in the success of the business is encouraged through company wide communication and consultation. Employees have opportunities to develop through a range of internal and external training programmes and nationally recognised qualifications.
The Company has been re-accredited as an Investors in People Gold Company. The involvement of employees in the local community is encouraged through our Business in the Community programme.
The Company believes it benefits substantially from having a diverse workforce and endorses the active application of equal opportunities policies and programmes to provide fair and equitable conditions for all employees regardless of sex, family status, religion, creed, colour, ethnic origin, age or disability.
The following table provides a breakdown of the Company Directors and employees as at the financial year end
Female Male
Company Directors 2 5
Executives/Senior Management 3 3
General Managers 6 5
All Employees 419 210
CASTLE LEISURE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 5 -
Supplier payment policy
The Company policy is to strive for excellent working relationships with our suppliers, which encourages mutual business development over the long term. We make payment, usually directly into the supplier’s bank account, before the end of the month following invoicing, subject to satisfactory performance of the supplier.
Health and safety
The Company is committed to providing a safe place to work and visit with a culture of excellence in health and safety across the Company. Our vision is not only to ensure full compliance but to lead our sector with a robust and consistent safety culture throughout Castle Leisure.
Our systematic internal approach to all health and safety matters is supported by a rigorous and independent inspection programme by the British Safety Council, with all clubs achieving the maximum 5 stars rating.
All 11 clubs have been awarded the sword of honour by the British Safety Council for Health and Safety. We are the only Company in the UK and Internationally to hold such accolades for all of our business units.
The Board reviews monthly reports on health and safety matters.
Taxation
We adopt a clear and transparent approach to taxation and do not pursue aggressive techniques to reduce our tax liability.
The total Corporation tax charge for the year is £709,598, which represents an effective tax rate of 24%; 2017: 17%.
Environment
The Company takes a long term view of its activities and responsibilities in reducing its environmental impact. Our environmental policy encourages respect for the working environment.
The Company adopts an environmentally responsible attitude in the attainment of our business objectives. Priority is given to energy and water conservation, to recycling waste materials where economically practical and to raising staff and customer awareness of the issues. Capital investment review into energy efficient assets is included as part of all major refurbishment works.
CASTLE LEISURE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 6 -
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mrs L M Morgan
Director
15 February 2019
CASTLE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CASTLE LEISURE LIMITED
- 7 -
Opinion
We have audited the financial statements of Castle Leisure Limited
(the 'Company')
for the year ended 30 December 2018 which comprise
the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and 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 FRS 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 30 December 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.
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 Auditor's
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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
Opinions on other matters 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 directors' r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
CASTLE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CASTLE LEISURE LIMITED
- 8 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors'
r
esponsibilities
s
tatement, 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 is 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.
Auditor's 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 an auditor’s report 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: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
CASTLE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CASTLE LEISURE LIMITED
- 9 -
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 an auditor's report 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.
Ian Thomas BSc FCA DChA (Senior Statutory Auditor)
for and on behalf of MHA Broomfield Alexander
15 February 2019
Chartered Accountants
Statutory Auditor
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
UK
CF23 8AB
CASTLE LEISURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 DECEMBER 2018
- 10 -
2018
2017
Notes
£
£
Turnover
3
31,875,344
31,925,358
Cost of sales
(5,550,291)
(5,432,069)
Gross profit
26,325,053
26,493,289
Administrative expenses
(23,515,885)
(23,676,280)
Other operating income
341,442
266,600
Exceptional item
4
-
468,370
Operating profit
5
3,150,610
3,551,979
Interest payable and similar expenses
9
(149,710)
(151,694)
Profit before taxation
3,000,900
3,400,285
Tax on profit
10
(709,598)
(568,924)
Profit for the financial year
2,291,302
2,831,361
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
CASTLE LEISURE LIMITED
BALANCE SHEET
AS AT
30 DECEMBER 2018
30 December 2018
- 11 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
12
48,977,537
50,239,639
Current assets
Stocks
14
281,106
278,451
Debtors
15
564,038
519,153
Cash at bank and in hand
2,352,752
675,296
3,197,896
1,472,900
Creditors: amounts falling due within one year
16
(10,868,126)
(4,833,276)
Net current liabilities
(7,670,230)
(3,360,376)
Total assets less current liabilities
41,307,307
46,879,263
Creditors: amounts falling due after more than one year
17
-
(6,250,000)
Net assets
41,307,307
40,629,263
Capital and reserves
Called up share capital
21
231,628
235,533
Share premium account
271,444
271,444
Capital redemption reserve
40,722
36,817
Profit and loss reserves
40,763,513
40,085,469
Total equity
41,307,307
40,629,263
The financial statements were approved by the board of directors and authorised for issue on 15 February 2019 and are signed on its behalf by:
Mr P J T Yapp
Mr J C Harris
Director
Director
Company Registration No. 00118558
CASTLE LEISURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 DECEMBER 2018
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 26 December 2016
238,818
264,044
33,332
38,750,355
39,286,549
Year ended 31 December 2017:
Profit and total comprehensive income for the year
-
-
-
2,831,361
2,831,361
Issue of share capital
21
200
7,400
-
-
7,600
Dividends
11
-
-
-
(942,132)
(942,132)
Redemption of shares
21
-
-
3,485
-
3,485
Reduction of shares
21
(3,485)
-
-
(554,115)
(557,600)
Balance at 31 December 2017
235,533
271,444
36,817
40,085,469
40,629,263
Year ended 30 December 2018:
Profit and total comprehensive income for the year
-
-
-
2,291,302
2,291,302
Dividends
11
-
-
-
(972,838)
(972,838)
Redemption of shares
21
-
-
3,905
-
3,905
Reduction of shares
21
(3,905)
-
-
(640,420)
(644,325)
Balance at 30 December 2018
231,628
271,444
40,722
40,763,513
41,307,307
CASTLE LEISURE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 DECEMBER 2018
- 13 -
2018
2017
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
7,071,698
6,829,132
Interest paid
(149,710)
(151,694)
Income taxes paid
(691,726)
(568,212)
Net cash inflow from operating activities
6,230,262
6,109,226
Investing activities
Purchase of tangible fixed assets
(2,106,248)
(4,252,144)
Proceeds on disposal of tangible fixed assets
66,700
17,868
Net cash used in investing activities
(2,039,548)
(4,234,276)
Financing activities
Proceeds from issue of shares
-
7,600
Redemption of shares
(640,420)
(554,115)
Repayment of bank loans
(900,000)
(475,000)
Dividends paid
(972,838)
(942,132)
Net cash used in financing activities
(2,513,258)
(1,963,647)
Net increase/(decrease) in cash and cash equivalents
1,677,456
(88,697)
Cash and cash equivalents at beginning of year
675,296
763,993
Cash and cash equivalents at end of year
2,352,752
675,296
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2018
- 14 -
1
Accounting policies
Company information
Castle Leisure Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
1 City Road, Cardiff, CF24 3TQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover
comprises revenue recognised from participation fees, gaming machine takings and the sale of food and drink received during the year net of gross profit tax, machine gaming duty and value added tax. Revenue is recognised as the services are rendered and food and drink revenue is recognised at the point of sale.
1.4
Tangible fixed assets
Freehold properties are stated at 1991 open market for existing use valuation with subsequent additions at cost. The cost of repairs and maintenance of the buildings is charged to profit and loss account as incurred. Impairment reviews are carried out to ensure freehold buildings are not carried above their recoverable amounts. Any impairment write downs are charged to the profit and loss account.
Other tangible fixed assets are stated at cost less depreciation.
Depreciation is provided at rates calculated to write off their cost less their estimated residual value, over their expected useful lives on the following bases:
Freehold property
3% straight line
Plant, equipment and vehicles
4-33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
1
Accounting policies (Continued)
- 15 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stock is valued at the lower of cost and net realisable value.
1.7
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
1
Accounting policies (Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
1
Accounting policies (Continued)
- 17 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and the recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be a suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time of the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
The Company operates a defined contribution plan under which the Company pays a fixed contribution to a separate entity. The Company has no further payment obligation once the contributions have been paid. The pension charge represents the amounts payable by the Company in respect of the 52 weeks.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 18 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2018
2017
£
£
Turnover analysed by class of business
Bingo admissions and participations
17,857,945
18,079,915
Net receipts from sale of goods
5,223,560
5,360,708
Net receipts from gaming machines
8,793,839
8,484,735
31,875,344
31,925,358
2018
2017
£
£
Turnover analysed by geographical market
United Kingdom
31,875,344
31,925,358
4
Exceptional costs/(income)
2018
2017
£
£
Exceptional item
-
(468,370)
The exceptional item in the prior period related to the re-development of the Canton site, which was completed in 2016. This balance included insurance monies, the cost of re-development of the new site, write-down of the damaged assets and additional costs associated with the re-development.
5
Operating profit
2018
2017
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
3,321,271
3,286,886
Profit on disposal of tangible fixed assets
(19,621)
(4,069)
6
Auditor's remuneration
2018
2017
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,700
21,650
For other services
Taxation compliance services
4,800
4,750
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 19 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2018
2017
Number
Number
Bingo clubs
600
610
Administration
30
30
630
640
Their aggregate remuneration comprised:
2018
2017
£
£
Wages and salaries
11,122,833
11,326,100
Social security costs
868,477
913,000
Pension costs
895,290
925,427
12,886,600
13,164,527
8
Directors' remuneration
2018
2017
£
£
Remuneration for qualifying services
1,281,459
1,347,592
Company pension contributions to defined contribution schemes
444,598
477,403
1,726,057
1,824,995
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2017 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2018
2017
£
£
Remuneration for qualifying services
860,959
904,493
Company pension contributions to defined contribution schemes
383,000
410,000
The gross equivalent of own pension contributions made by the highest paid director was £57,573 (2017: £59,289).
A total of £56,359 (2017: £55,988) was paid as pension and benefits to former directors.
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 20 -
9
Interest payable and similar expenses
2018
2017
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
149,710
151,694
10
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
740,461
612,595
Adjustments in respect of prior periods
1,137
(43,671)
Total current tax
741,598
568,924
Deferred tax
Origination and reversal of timing differences
(32,000)
-
Total tax charge
709,598
568,924
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2018
2017
£
£
Profit before taxation
3,000,900
3,400,285
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2017: 19.00%)
570,171
646,054
Tax effect of expenses that are not deductible in determining taxable profit
7,769
552
Tax effect of income not taxable in determining taxable profit
(22,479)
(156,165)
Adjustments in respect of prior years
1,137
(43,671)
Depreciation in excess of capital allowances
153,000
122,154
Taxation for the year
709,598
568,924
11
Dividends
2018
2017
£
£
Paid in the year
972,838
942,132
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 21 -
12
Tangible fixed assets
Freehold property
Plant, equipment and vehicles
Total
£
£
£
Cost
At 1 January 2018
39,105,454
36,934,744
76,040,198
Additions
-
2,106,248
2,106,248
Disposals
-
(2,203,571)
(2,203,571)
At 30 December 2018
39,105,454
36,837,421
75,942,875
Depreciation and impairment
At 1 January 2018
765,579
25,034,980
25,800,559
Depreciation charged in the year
25,000
3,296,271
3,321,271
Eliminated in respect of disposals
-
(2,156,492)
(2,156,492)
At 30 December 2018
790,579
26,174,759
26,965,338
Carrying amount
At 30 December 2018
38,314,875
10,662,662
48,977,537
At 31 December 2017
38,339,875
11,899,764
50,239,639
13
Financial instruments
2018
2017
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,565
640
Carrying amount of financial liabilities
Measured at amortised cost
9,303,018
10,024,851
14
Stocks
2018
2017
£
£
Goods for resale
281,106
278,451
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 22 -
15
Debtors
2018
2017
Amounts falling due within one year:
£
£
Other debtors
4,565
640
Prepayments and accrued income
497,473
488,513
502,038
489,153
Deferred tax asset (note 19)
62,000
30,000
564,038
519,153
16
Creditors: amounts falling due within one year
2018
2017
Notes
£
£
Bank loans and overdrafts
18
6,250,000
900,000
Trade creditors
1,112,662
1,129,625
Corporation tax
390,461
340,589
Other taxation and social security
1,174,647
717,836
Accruals and deferred income
1,940,356
1,745,226
10,868,126
4,833,276
17
Creditors: amounts falling due after more than one year
2018
2017
Notes
£
£
Bank loans and overdrafts
18
-
6,250,000
18
Loans and overdrafts
2018
2017
£
£
Bank loans
6,250,000
7,150,000
Payable within one year
6,250,000
900,000
Payable after one year
-
6,250,000
The bank loan is secured by a first charge on certain freehold property of the company and bears interest at 1.75% above the bank's base rate. As at the date of signing the accounts the repayment terms of a new loan were under ongoing re-negotiation with the lender.
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 23 -
19
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Assets
Assets
2018
2017
Balances:
£
£
(Decelerated)/accelerated capital allowances
40,000
9,800
Other timing differences
22,000
20,200
62,000
30,000
2018
Movements in the year:
£
Liability/(Asset) at 1 January 2018
(30,000)
Credit to profit or loss
(32,000)
Liability/(Asset) at 30 December 2018
(62,000)
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
20
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
895,290
925,427
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently-administered fund.
21
Share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
231,628 Ordinary shares of £1 each
231,628
235,533
231,628
235,533
During the period the company purchased 3,905 ordinary shares of £1 each for £640,420.
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 24 -
22
Financial commitments
The company has unfunded pension commitments to one of its executive directors and two former non executive directors.
23
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2018
2017
£
£
Within one year
626,140
101,086
Between two and five years
1,484,074
198,714
2,110,214
299,800
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2018
2017
£
£
Acquisition of tangible fixed assets
610,000
260,000
25
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2018
2017
£
£
Aggregate compensation
1,726,057
1,824,995
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Dividend payments
2018
2017
£
£
Key management personnel
139,804
133,128
CASTLE LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2018
- 25 -
26
Cash generated from operations
2018
2017
£
£
Profit for the year after tax
2,291,302
2,831,361
Adjustments for:
Taxation charged
709,598
568,925
Finance costs
149,710
151,694
Gain on disposal of tangible fixed assets
(19,621)
(4,069)
Depreciation and impairment of tangible fixed assets
3,321,271
3,286,886
Movements in working capital:
(Increase)/decrease in stocks
(2,655)
14,866
(Increase) in debtors
(12,885)
(35,721)
Increase in creditors
634,978
15,190
Cash generated from operations
7,071,698
6,829,132
2018-12-30
2018-01-01
false
CCH Software
CCH Accounts Production 2019.200
Mr M H Andrews
Mr W J Davies
Mr J C Harris
Mr P J T Yapp
Mr S D Phillips
Mrs K L Brown
Mrs K L Brown
Mrs L M Morgan
00118558
2018-01-01
2018-12-30
00118558
bus:Director1
2018-01-01
2018-12-30
00118558
bus:Director2
2018-01-01
2018-12-30
00118558
bus:Director3
2018-01-01
2018-12-30
00118558
bus:Director4
2018-01-01
2018-12-30
00118558
bus:CompanySecretaryDirector1
2018-01-01
2018-12-30
00118558
bus:Director5
2018-01-01
2018-12-30
00118558
bus:Director6
2018-01-01
2018-12-30
00118558
bus:CompanySecretary1
2018-01-01
2018-12-30
00118558
bus:Director7
2018-01-01
2018-12-30
00118558
bus:RegisteredOffice
2018-01-01
2018-12-30
00118558
2018-12-30
00118558
2016-12-26
2017-12-31
00118558
core:Exceptional
1
2016-12-26
2017-12-31
00118558
core:RetainedEarningsAccumulatedLosses
2018-01-01
2018-12-30
00118558
2017-12-31
00118558
core:LandBuildings
core:OwnedOrFreeholdAssets
2018-12-30
00118558
core:PlantMachinery
2018-12-30
00118558
core:LandBuildings
core:OwnedOrFreeholdAssets
2017-12-31
00118558
core:PlantMachinery
2017-12-31
00118558
core:CurrentFinancialInstruments
2018-12-30
00118558
core:CurrentFinancialInstruments
2017-12-31
00118558
core:Non-currentFinancialInstruments
2017-12-31
00118558
core:ShareCapital
2018-12-30
00118558
core:ShareCapital
2017-12-31
00118558
core:SharePremium
2018-12-30
00118558
core:SharePremium
2017-12-31
00118558
core:CapitalRedemptionReserve
2018-12-30
00118558
core:CapitalRedemptionReserve
2017-12-31
00118558
core:RetainedEarningsAccumulatedLosses
2018-12-30
00118558
core:RetainedEarningsAccumulatedLosses
2017-12-31
00118558
core:ShareCapital
core:RestatedAmount
2016-12-25
00118558
core:SharePremium
core:RestatedAmount
2016-12-25
00118558
core:CapitalRedemptionReserve
core:RestatedAmount
2016-12-25
00118558
core:RestatedAmount
2016-12-25
00118558
core:ShareCapitalOrdinaryShares
2018-12-30
00118558
core:ShareCapitalOrdinaryShares
2017-12-31
00118558
core:ShareCapital
2016-12-26
2017-12-31
00118558
core:SharePremium
2016-12-26
2017-12-31
00118558
core:RetainedEarningsAccumulatedLosses
2016-12-26
2017-12-31
00118558
1
2018-01-01
2018-12-30
00118558
1
2016-12-26
2017-12-31
00118558
core:LandBuildings
core:OwnedOrFreeholdAssets
2018-01-01
2018-12-30
00118558
core:PlantMachinery
2018-01-01
2018-12-30
00118558
core:OwnedAssets
2018-01-01
2018-12-30
00118558
core:OwnedAssets
2016-12-26
2017-12-31
00118558
core:UKTax
2018-01-01
2018-12-30
00118558
core:UKTax
2016-12-26
2017-12-31
00118558
core:LandBuildings
core:OwnedOrFreeholdAssets
2017-12-31
00118558
core:PlantMachinery
2017-12-31
00118558
2017-12-31
00118558
bus:OrdinaryShareClass1
2018-01-01
2018-12-30
00118558
bus:OrdinaryShareClass1
2018-12-30
00118558
bus:PrivateLimitedCompanyLtd
2018-01-01
2018-12-30
00118558
bus:FRS102
2018-01-01
2018-12-30
00118558
bus:Audited
2018-01-01
2018-12-30
00118558
bus:FullAccounts
2018-01-01
2018-12-30
xbrli:pure
xbrli:shares
iso4217:GBP