Giffords Hall Vineyard Limited
Unaudited Financial Statements
For the year ended 31 October 2020
Pages for filing with registrar
Company Registration No. 08014306 (England and Wales)
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
CONTENTS
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 10
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
Accountants Report to the Director on the Unaudited Financial Statements of Giffords Hall Vineyard Limited
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Giffords Hall Vineyard Limited for the year ended 31 October 2020
set out on the following pages
from the company’s accounting records and from information and explanations you have given us
.
This report is made solely to the Director of Giffords Hall Vineyard Limited, as a body, in accordance with the terms of our engagement letter dated 2 May 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Giffords Hall Vineyard Limited. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Giffords Hall Vineyard Limited and Director as a body, for our work or for this report.
It is your duty to ensure that Giffords Hall Vineyard Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Giffords Hall Vineyard Limited. You consider that Giffords Hall Vineyard Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Giffords Hall Vineyard Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Churchgate Accountants Limited
27 July 2021
Accountants
18 Langton Place
Bury St Edmunds
Suffolk
IP33 1NE
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
BALANCE SHEET
AS AT 31 OCTOBER 2020
31 October 2020
- 2 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
33,875
45,000
Tangible assets
4
463,746
454,078
497,621
499,078
Current assets
Stocks
5
183,983
158,386
Debtors
6
32,689
20,908
Cash at bank and in hand
170
216,672
179,464
Creditors: amounts falling due within one year
7
(135,163)
(100,057)
Net current assets
81,509
79,407
Total assets less current liabilities
579,130
578,485
Creditors: amounts falling due after more than one year
8
(43,901)
(8,875)
Provisions for liabilities
(11,928)
Net assets
535,229
557,682
Capital and reserves
Called up share capital
620,057
620,057
Share premium account
98,880
98,880
Revaluation reserve
9
96,739
97,789
Profit and loss reserves
(280,447)
(259,044)
Total equity
535,229
557,682
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
BALANCE SHEET (CONTINUED)
AS AT 31 OCTOBER 2020
31 October 2020
- 3 -
The financial statements were approved and signed by the director and authorised for issue on 26 July 2021
Mrs C L Howard
Director
Company Registration No. 08014306
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2020
- 4 -
1
Accounting policies
Company information
Giffords Hall Vineyard Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Giffords Hall, Shimpling, Bury St Edmunds, Suffolk, IP29 4EX.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
In March 2020 the COVID-19 virus had a substantial impact on the global economy. However, the director's have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, and that the economic affects of the virus are not expected to have a long-term impact on the future of the company. The accounts have therefore been prepared on a going concern basis.
true
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
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
1
Accounting policies
(Continued)
- 5 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Knowledge and know-how
10% Straight Line
1.5
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.
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:
Freehold Property
1% Straight Line
Plant and machinery
20% Reducing Balance
Biological Assets - Vines
5% Straight Line
Computer equipment
25% Reducing Balance
Improvements to Property
10% 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
.
Freehold Property was revalued by the Directors as at 1 November 2015 on transition to FRS102 accounting standards. The Directors have elected to treat this revalued amount as deemed cost, and will continue to use the historic cost convention going forward.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
1
Accounting policies
(Continued)
- 6 -
1.8
Cash at bank and in hand
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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.
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, 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.
1.10
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
1
Accounting policies
(Continued)
- 7 -
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
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.
1.13
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.
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.
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
- 8 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 9 (2019 - 4).
2020
2019
Number
Number
Total
9
4
3
Intangible fixed assets
Knowledge and know-how
£
Cost
At 1 November 2019 and 31 October 2020
111,250
Amortisation and impairment
At 1 November 2019
66,250
Amortisation charged for the year
11,125
At 31 October 2020
77,375
Carrying amount
At 31 October 2020
33,875
At 31 October 2019
45,000
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
- 9 -
4
Tangible fixed assets
Freehold Property
Plant and machinery
Biological Assets - Vines
Computer equipment
Improvements to Property
Total
£
£
£
£
£
£
Cost
At 1 November 2019
420,000
87,542
8,159
6,111
13,374
535,186
Additions
575
25,842
26,417
At 31 October 2020
420,000
88,117
8,159
6,111
39,216
561,603
Depreciation and impairment
At 1 November 2019
16,800
48,507
3,283
5,041
7,477
81,108
Depreciation charged in the year
4,200
7,951
408
268
3,922
16,749
At 31 October 2020
21,000
56,458
3,691
5,309
11,399
97,857
Carrying amount
At 31 October 2020
399,000
31,659
4,468
802
27,817
463,746
At 31 October 2019
403,200
39,035
4,876
1,070
5,897
454,078
5
Stocks
2020
2019
£
£
Work in progress
121,493
111,768
Finished goods and goods for resale
62,490
46,618
183,983
158,386
6
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
10,538
8,348
Corporation tax recoverable
11,045
Other debtors
11,106
12,560
32,689
20,908
GIFFORDS HALL VINEYARD LIMITED
Giffords Hall Vineyard Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2020
- 10 -
7
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
31,478
29,665
Trade creditors
30,531
14,407
Taxation and social security
2,729
Other creditors
73,154
53,256
135,163
100,057
8
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
40,000
Other creditors
3,901
8,875
43,901
8,875
9
Revaluation reserve
2020
2019
£
£
At the beginning of the year
97,789
98,839
Transfer to retained earnings
(1,050)
(1,050)
At the end of the year
96,739
97,789
Freehold Property was revalued by the Directors as at 1 November 2015 on transition to FRS102 accounting standards. The Directors have elected to treat this revalued amount as deemed cost, and will continue to use the historic cost convention going forward.
10
Events after the reporting date
At the date of signing and after the reporting date, the Company received the Retail, Hospitality and Leisure grant.
11
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
2.50
11,973
25,246
67
(65,642)
(28,356)
11,973
25,246
67
(65,642)
(28,356)