Company Registration No. 04085144 (England and Wales)
CROW WOOD LEISURE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
PAGES FOR FILING WITH REGISTRAR
CROW WOOD LEISURE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
CROW WOOD LEISURE LIMITED
BALANCE SHEET
AS AT
30 APRIL 2020
30 April 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
2,568,798
2,363,847
Current assets
Stocks
156,115
92,299
Debtors
4
1,001,964
1,025,249
Cash at bank and in hand
666
47,087
1,158,745
1,164,635
Creditors: amounts falling due within one year
5
(2,940,345)
(1,990,145)
Net current liabilities
(1,781,600)
(825,510)
Total assets less current liabilities
787,198
1,538,337
Creditors: amounts falling due after more than one year
6
(16,365)
(9,337)
Provisions for liabilities
(260,000)
(260,000)
Net assets
510,833
1,269,000
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
510,832
1,268,999
Total equity
510,833
1,269,000
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 19 October 2020 and are signed on its behalf by:
O Brown
Director
Company Registration No. 04085144
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2020
- 2 -
1
Accounting policies
Company information
Crow Wood Leisure Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Crow Wood Leisure Centre, Holme Road, Burnley, Lancashire, BB12 0RT.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
The coronavirus pandemic has impacted on the trading and cash flow of the company. The period of time for which the impact will continue is considered to be unknown. Whilst trading conditions have improved significantly from the initial lockdown in the period March 2020 to date the hospitality sector in which the company operates has been adversely impacted by the pandemic and would presumably be impacted similarly by any resurgence of the coronavirus in the immediate future. The likelihood of coronavirus continuing to spread throughout the population and any subsequent lockdown, and the potential impact on the hospitality sector, remains uncertain.
The directors have prepared financial forecasts that demonstrate the future viability of the business having utilised government incentives and obtained additional financing. The directors recognise the uncertainties and sensitivities in the forecasts given the sector and environment in which the company operates, and how this could impact on income, cash flow and financing.
Whilst the directors consider that these material uncertainties may cast doubt on the company's ability to continue as a going concern, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, and therefore in their opinion the financial statements should be prepared on a going concern basis.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
2% straight line basis
Fixtures and fittings
5-33% straight line basis
Motor vehicles
25% straight line basis
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.
Recoverable amount is the higher of fair value less costs to sell and value in use.
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash at bank and in hand
are basic financial assets
and
include cash in hand
.
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 measured at transaction price including transaction costs
.
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.
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank
overdrafts and
loans from
fellow group companies that are classified as debt, are recognised at transaction price
.
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 at transaction price
.
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.
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
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
1
Accounting policies
(Continued)
- 5 -
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
252
194
3
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2019
676,466
3,296,146
63,010
4,035,622
Additions
-
448,982
126,165
575,147
Disposals
-
(5,690)
(40,320)
(46,010)
At 30 April 2020
676,466
3,739,438
148,855
4,564,759
Depreciation and impairment
At 1 May 2019
80,588
1,567,175
24,012
1,671,775
Depreciation charged in the year
13,532
316,391
30,077
360,000
Eliminated in respect of disposals
-
(5,690)
(30,124)
(35,814)
At 30 April 2020
94,120
1,877,876
23,965
1,995,961
Carrying amount
At 30 April 2020
582,346
1,861,562
124,890
2,568,798
At 30 April 2019
595,878
1,728,971
38,998
2,363,847
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 6 -
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
5,580
5,534
Amounts owed by group undertakings
577,950
721,017
Other debtors
418,434
298,698
1,001,964
1,025,249
5
Creditors: amounts falling due within one year
2020
2019
£
£
Bank overdraft
744
6,326
Trade creditors
501,787
462,014
Taxation and social security
599,624
375,812
Other creditors
1,838,190
1,145,993
2,940,345
1,990,145
6
Creditors: amounts falling due after more than one year
2020
2019
£
£
Other creditors
16,365
9,337
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified, but included the following disclosures:
We draw your attention to notes 1.2 and 9 in the financial statements.
The events and conditions stated in these notes indicate that a material uncertainty exists that may cast doubt on the company’s ability to continue as a going concern.
Our opinion is not modified in respect of this matter.
The senior statutory auditor was Mr Nicholas Stockton.
The auditor was Azets Audit Services.
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2020
- 7 -
8
Financial commitments, guarantees and contingent liabilities
Contingent liabilities
The company's bankers hold a composite guarantee securing the bank borrowings of the company
and other group companies. At 30 April 20
20
, the total bank borrowings of the group amounted to
£
11,075,807
(201
9
- £
4,141,223)
.
9
Events after the reporting date
Since the year end, the spread of COVID-19 has severely impacted many local economies around the globe and in common with many other UK businesses, the company was forced to cease operations and close its facilities for a period of time. The company operates within a sector where measures taken, based upon Government advice to contain the spread of the virus, mean that operations may be affected beyond the initial period of lockdown. The company has reduced costs and taken advantage of available incentives to manage the financial impact of the pandemic.
The directors have determined that these events are non-adjusting subsequent events. Accordingly, the financial position and results of operations as of and for the year ended 30 April 2020 have not been adjusted to reflect their impact.
10
Parent company
The company's immediate parent is Andrew Brown Leisure Limited
whose registered office is
Crow Wood Leisure Centre, Royle, Lane, Burnley, Lancashire, BB12 0RT
.
The most senior parent entity producing publicly available financial statements is Andrew Brown
Leisure Limited. These financial statements are available upon request from Companies House,
Crown Way, Cardiff, CF14 3UZ
.