Company Registration No. 04085144 (England and Wales)
CROW WOOD LEISURE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
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 2021
30 April 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
2,452,349
2,568,798
Current assets
Stocks
83,323
156,115
Debtors
5
1,486,127
1,001,964
Cash at bank and in hand
825
666
1,570,275
1,158,745
Creditors: amounts falling due within one year
6
(3,702,714)
(2,940,345)
Net current liabilities
(2,132,439)
(1,781,600)
Total assets less current liabilities
319,910
787,198
Creditors: amounts falling due after more than one year
7
(12,941)
(16,365)
Provisions for liabilities
(60,000)
(260,000)
Net assets
246,969
510,833
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
246,968
510,832
Total equity
246,969
510,833
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 31 August 2021 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 2021
- 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, United Kingdom, 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
These financial statements have been prepared on the going concern basis. The current economic climate presents risks for all businesses. During the year ended 30 April 2021, the Covid-19 pandemic resulted in the government imposing a series of lockdowns, restricting hospitality and leisure activities. This has inevitably had a significant effect on the company’s trade and activity. These restrictions led to a significant number of hotel, spa and wedding bookings being postponed during the financial year ended 30 April 2021. Throughout this period, and subsequent to the balance sheet date, the company has taken appropriate financial measures including cost mitigation and government support schemes to ensure the financial stability of the business.
Despite the closure of all facilities for prolonged periods and the cost of cancelling, rebooking and in some cases refunding customers, there has been an overall increase in the number of future bookings. Given this, the Directors envisage the company coming out of the Covid-19 pandemic in a positive position that will enable the company to thrive and show improved trading performance post year end.
Whilst the directors acknowledge there are continuing material uncertainties in respect of the Covid-19 pandemic that may impact on 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
.
Turnover
represents the invoiced amount of food and drink sold and other services provided net of value added tax. Turnover is recognised at the point at which the company has
fulfilled its contractual obligations.
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 2021
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:
Property 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
If any
indication of impairment 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
net realisable value.
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 2021
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
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 5 -
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.
1.14
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
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Business continuity
The directors have considered the impact of COVID-19 on the business. This has included judgments in respect of the extent and timing for the lifting of restrictions on the hospitality sector, as well as the uncertainty surrounding Government policy in the future. The directors believe that the company will have sufficient cash and resources available for it to trade. However, they recognise the uncertainty and sensitivity in the assumptions made and in the industry and sector in which the company operates give rise to a material uncertainty in relation to going concern.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
283
252
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 6 -
4
Tangible fixed assets
Property improvements
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2020
676,466
3,739,438
148,855
4,564,759
Additions
265,679
265,679
Disposals
(26,320)
(26,320)
At 30 April 2021
676,466
4,005,117
122,535
4,804,118
Depreciation and impairment
At 1 May 2020
94,120
1,877,876
23,965
1,995,961
Depreciation charged in the year
13,532
337,616
23,852
375,000
Eliminated in respect of disposals
(19,192)
(19,192)
At 30 April 2021
107,652
2,215,492
28,625
2,351,769
Carrying amount
At 30 April 2021
568,814
1,789,625
93,910
2,452,349
At 30 April 2020
582,346
1,861,562
124,890
2,568,798
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
42,481
5,580
Amounts owed by group undertakings
854,295
577,950
Other debtors
589,351
418,434
1,486,127
1,001,964
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank overdraft
2
744
Trade creditors
278,630
501,787
Taxation and social security
328,095
599,624
Other creditors
3,095,987
1,838,190
3,702,714
2,940,345
CROW WOOD LEISURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 7 -
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other creditors
12,941
16,365
8
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 10 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 Lee Van Houplines and the auditor was Azets Audit Services.
9
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 2021, the total bank borrowings of the group amounted to
£
11,
213,318 (2020 - £11
,
033,307
)
.
10
Events after the reporting date
Since the year end, there has been a gradual relaxation of Covid-19 related lockdown restrictions. On the 19
th
July 2021, all restrictions relating to the hospitality industry were removed. This has meant that the company has been able to operate its facilities at full capacity from this date. Post year end performance has been significantly better than financial performance during the year end 30 April 2021, and has exceeded the directors initial expectations. Subject to there being no restrictions imposed in the future, the directors envisage this positive performance will continue.
11
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. T
he consolidated
financial statements
of the group
are available upon request from Companies House,
Crown Way, Cardiff, CF14 3UZ
.
The ultimate controlling party is A W Brown by virtue of his family interest.