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Registered number:  02233431










THE VINEYARD AT STOCKCROSS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2018

 
THE VINEYARD AT STOCKCROSS LIMITED
 

COMPANY INFORMATION


A G McKenzie  
M V Morris  
B Wilkinson  




02233431



Buckingham House
West Street

Newbury

Berkshire

RG14 1BE




James Cowper Kreston
Chartered Accountants and Statutory Auditor

Mill House

Overbridge Square

Hambridge Lane

Newbury

RG14 5UX




HSBC Bank Plc
28 High Street

Uxbridge

Middlesex

UB8 1BY




Irwin Mitchell
Mercantile House

18 London Road

Newbury

Berkshire

RG14 1JX





 
THE VINEYARD AT STOCKCROSS LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 25


 
THE VINEYARD AT STOCKCROSS LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018

BUSINESS REVIEW
The Company is a five star luxury boutique hotel providing a high end wine and food offering which is primarily focused on the weekend leisure guest and midweek business travellers.
The business also operates an exclusive wine agent, importing and selling wines from small bespoke wineries located in California.
The trading position for the year remained flat, although increased labour costs have resulted in a trading loss before taxation of £ 510,802 ( 2017: £5,738,255).
2019 will see further capital investment to include the development of the external gardens within the hotel boundaries.

 
The company uses various financial instruments including cash, loans and items such as trade debtors and trade creditors that arise directly from its operations. The purpose of these financial instruments is to raise finance for the company’s operations.
The risks arising from the company’s financial instruments are currency risk, liquidity risk, interest rate risk and credit risk. The directors review and agree policies for managing each of these risks and these policies have remained unchanged from previous years.

 
The principal trading currency of the company is sterling. Certain purchases are made in US dollars and to minimise foreign exchange risk, the company operates a US bank account and prices the sale based on the US cost of purchase.

 
The company manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

 
The company uses loans to finance the expansion and improvement of the facilities which in the long term will improve profitability. Any interest rate risk is manageable through cash assets. No interest is payable on inter company balances. The company’s cash asset are all held in floating rate deposit accounts. Trade debtors and creditors do not attract interest.

 
The company’s principal financial assets are cash and trade debtors. To manage trade debtor credit risk the directors set limits for customers based on a combination of payment history and third party credit references. Credit limits are reviewed on a regular basis in conjunction with debt ageing and collection history.


This report was approved by the board  and signed on its behalf.



................................................
M V Morris
Director

Date:  26 September 2019

Page 1

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018

The directors present their report and the financial statements for the year ended 31 December 2018.


The principal activity was running a hotel.


The directors who served during the year were:

M V Morris  
B Wilkinson  


The loss for the year, after taxation, amounted to £ 510,802  (2017 -  loss  £ 5,738,255 ) .
No divdends were approved for payment for 2018 or 2017.


The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.


Each of the persons who are  directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 2

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2018


There have been no significant events affecting the Company since the year end.


The auditor, James Cowper Krestonwill be proposed for reappointment in accordance with  section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






Date:  26 September 2019

Page 3

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF THE VINEYARD AT STOCKCROSS LIMITED
 



We have audited the financial statements of The Vineyard at Stockcross Limited (the 'Company') for the year ended 31 December 2018, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity  and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,  including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2018 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.



Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:


the directors ' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.



Other information


The directors are responsible for the other information. The other information comprises the information 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 statementsour 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.
Page 4

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF THE VINEYARD AT STOCKCROSS LIMITED (CONTINUED)




We have nothing to report in this regard.


 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report 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.



Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which 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' responsibilities statement on page 2, 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:  www.frc.org.uk/auditorsresponsibilities . This description forms part of our Auditor's report.


Page 5

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF THE VINEYARD AT STOCKCROSS LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body,  in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Michael Farwell MA FCA DChA  (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston
 
Chartered Accountants and Statutory Auditor
  
Mill House
Overbridge Square
Hambridge Lane
Newbury
RG14 5UX

27 September 2019
Page 6

 
THE VINEYARD AT STOCKCROSS LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2018

As restated
2018
2017
Note
£
£
   

Turnover
 4 
5,575,968
5,718,220

Cost of sales
   
(1,269,228 )
(1,478,556 )

Gross profit
   
4,306,740
4,239,664

Administrative expenses
   
(4,912,601 )
(4,827,474 )

Exceptional administrative expenses
   
-
(5,402,789 )

Other operating income
 5 
181,301
329,596

Operating loss
 6 
(424,560 )
(5,661,003 )

Interest payable and expenses
 10 
(86,242 )
(77,252 )

Loss before tax
   
(510,802 )
(5,738,255 )

Loss for the financial year
   
(510,802 )
(5,738,255 )

There was no other comprehensive income for 2018 (2017:£ NIL).

The notes on pages 10 to 25 form part of these financial statements.

Page 7

 
THE VINEYARD AT STOCKCROSS LIMITED
REGISTERED NUMBER:  02233431

BALANCE SHEET
AS AT  31 DECEMBER 2018

As restated
2018
2017
Note
£
£
   

Tangible assets
 13 
7,076,064
7,015,650

   
7,076,064
7,015,650

Current assets
   

Stocks
 15 
901,385
787,557

Debtors: amounts falling due within one year
 16 
1,149,941
1,547,044

Cash at bank and in hand
 17 
1,952
2,019

   
2,053,278
2,336,620

Creditors: amounts falling due within one year
 18 
(23,861,766 )
(23,493,892 )

Net current liabilities
   
 
 
(21,808,488 )
 
 
(21,157,272 )

Total assets less current liabilities
   
(14,732,424 )
(14,141,622 )

Creditors: amounts falling due after more than one year
 19 
(2,800,000 )
(2,880,000 )

   

Net liabilities
   
(17,532,424 )
(17,021,622 )

Capital and reserves
   

Called up share capital 
 22 
2,867,895
2,867,895

Share premium account
 23 
20,587
20,587

Profit and loss account
 23 
(20,420,906 )
(19,910,104 )

   
(17,532,424 )
(17,021,622 )


The financial statements were approved and authorised for issue by the board and were signed on its behalf by : 




Director

Date:  26 September 2019

The notes on pages 10 to 25 form part of these financial statements.

Page 8

 
THE VINEYARD AT STOCKCROSS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED  31 DECEMBER 2018


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2017
2,867,895
20,587
(14,171,849 )
(11,283,367 )


Comprehensive income for the year

Loss for the year
-
-
(5,738,255 )
(5,738,255 )



At 1 January 2018 (as previously stated)
2,867,895
20,587
(14,507,315 )
(11,618,833 )

Prior year adjustment
-
-
(5,402,789 )
(5,402,789 )


At 1 January 2018 (as restated)
2,867,895
20,587
(19,910,104 )
(17,021,622 )


Comprehensive income for the year

Loss for the year
-
-
(510,802 )
(510,802 )


At 31 December 2018
2,867,895
20,587
(20,420,906 )
(17,532,424 )


The notes on pages 10 to 25 form part of these financial statements.

Page 9

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018

General information

The Vineyard at Stockcross Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom and registered in England and Wales. The address of the Company’s principal place of business is The Vineyard Hotel, Stockcross, Newbury, Berkshire, RG20 8JU.

2. Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in  the UK and the Republic of Ireland and the Companies Act 2006 .

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Financial reporting standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).

This information is included in the consolidated financial statements of Stockford Limited as at 31 December 2018 and these financial statements may be obtained from Buckingham House, West Street, Newbury, Berkshire, England, RG14 1BE.

2.3

Going concern

The Directors of the Company have prepared the financial statements on a going concern basis despite the Company being in a net liabilities position of £17,532,424 (2017: £17,021,622) at the yearend including net current liabilities of £21,808,488 (2017: £21,157,272). The company has made a loss of £510,802 (2017: £5,738,255) in the year.
In assessing whether the going concern basis is appropriate, the Directors take into account all available information about the future, which is at least, but not limited to, 12 months from the approval of these financial statements.  The Directors have performed this review at a company level and have also performed a review for the entire group as disclosed in the financial statements of the ultimate parent company, Stockford Limited.
The Directors have a reasonable expectation that the Company has adequate resources, and will continue to be supported by its ultimate parent company as necessary, to continue in operational existence for the foreseeable future.  Thus they continue to adopt the going concern basis in preparing these financial statements.

Page 10

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018

2. Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 11

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018

2. Accounting policies (continued)

Tangible fixed assets (continued)

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, straight-line method.

The estimated useful lives range as follows:

Freehold property
-
0% Straight line
Plant and machinery
-
10-50% Straight line
Motor vehicles
-
25% Straight line
Fixtures and fittings
-
20% Straight line
Assets under construction
-
0% Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
 
The condition and upkeep of the freehold property is carried out on a continuous basis by the
company with any payments being charged to the profit and loss account as it arises. This
depreciation policy reflects the expected benefits of such assets and provides consistency with the
depreciation methods used by other entities within the same industry.
 
In accordance with GAAP (Generally Accepted Accounting Practice), the assets under construction
do not begin to be depreciated until they come into use. Once assets under construction come into
use they are transferred to the relevant categories and commence being depreciated if applicable.

2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.7

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

2.8

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 12

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018

2. Accounting policies (continued)

2.10

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.11

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.12

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.14

Borrowing costs

All borrowing costs are recognised in the Statement of comprehensive income in the year in which they are incurred.

2.15

Finance costs

Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 13

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018

2. Accounting policies (continued)

2.16

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

2.17

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

In applying the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historic experience and other factors that are considered to be applicable. Due to the inherent subjectivity in making such judgements, estimates and assumptions, the actual results and outcomes may differ.  The estimates and underlying assumptions are reviewed on an ongoing basis. 
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Determining residual values and useful economic lives of tangible fixed assets 
The company depreciates tangible fixed assets over their useful economic lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of the assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management determining the residual values for property, plant and equipment. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already in the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Page 14

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£

Provision of rooms
1,818,792
1,851,359

Sale of food and beverages
2,717,169
2,667,130

Provision of spa services
301,084
302,155

Provision of sundry services
353,554
363,494

Cellars
385,369
534,082

5,575,968
5,718,220


All turnover arose within the United Kingdom.

2018
2017
£
£

Other operating income
181,301
329,596

181,301
329,596


Other operating income relates to management fees charged to fellow subsidiary Donnington Valley Group Limited, and to its subsidiary Knights Valley Hotels Limited.

The operating loss is stated after charging:

2018
2017
£
£
143,270
127,330

Fees payable to the Company's auditor and its associates for the audit of the Company's annual finanical statements
8,000
8,000

Other operating lease rentals
2,685
3,775

Defined contribution pension cost
135,569
85,175

Page 15

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£


Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
8,000
8,000

Services relating to taxation
2,000
2,000



Staff costs, including directors' remuneration, were as follows:


2018
2017
£
£

Wages and salaries
2,447,345
2,436,402

Social security costs
206,993
215,924

Cost of defined contribution scheme
135,569
85,175

2,789,907
2,737,501


The average monthly number of employees, including the directors, during the year was as follows:


         2018
         2017
             No.
             No.







Management and administration staff
12
17



Sales and marketing staff
5
3



Operational staff
102
101

119
121

Page 16

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£

Directors' emoluments
316,223
143,798

Company contributions to defined contribution pension schemes
17,419
44,046

333,642
187,844


The highest paid director received remuneration of £ 206,944  (2017 - £ NIL ) .


Interest payable and similar expenses

2018
2017
£
£


Bank interest payable
86,242
77,252

86,242
77,252


2018
2017
£
£



Total current tax
-
-
Page 17

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
 
11. Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than  (2017 - higher than)  the standard rate of corporation tax in the UK of  19 %  (2017 -  19.25 %) . The differences are explained below:

2018
2017
£
£


Loss on ordinary activities before tax
(510,802 )
(5,738,255 )


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2017 - 19.25%)
(97,052 )
(67,093 )

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
490
4

Capital allowances in excess of depreciation
(843,680 )
57,026

Utilisation of tax losses
-
10,063

Income not taxable for tax purposes
(143 )
-

Deferred tax not recognised
841,397
-

Adjust deferred tax to average rate of 19.00%
98,988
-

Total tax charge for the year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 18

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£


Impairment of tangible fixed assets
-
5,402,789

-
5,402,789





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Assets under construc-tion
Total

£
£
£
£
£
£



Cost or valuation


At 1 January 2018
12,135,441
1,399,801
48,342
1,390,047
63,977
15,037,608


Additions
-
136,520
-
55,077
12,087
203,684



At 31 December 2018

12,135,441
1,536,321
48,342
1,445,124
76,064
15,241,292



Depreciation


At 1 January 2018
5,668,697
1,330,759
48,342
974,160
-
8,021,958


Charge for the year
630
58,411
-
84,229
-
143,270



At 31 December 2018

5,669,327
1,389,170
48,342
1,058,389
-
8,165,228



Net book value



At 31 December 2018
6,466,114
147,151
-
386,735
76,064
7,076,064



At 31 December 2017
6,466,744
69,042
-
415,887
63,977
7,015,650

Freehold property includes freehold land of £103,500 which is not depreciated. 

Page 19

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018




Investments in subsidiary companies

£



Cost or valuation


At 1 January 2018
192,308



At 31 December 2018

192,308



Impairment


At 1 January 2018
192,308



At 31 December 2018

192,308






At 31 December 2018
-



At 31 December 2017
-


Subsidiary undertakings


Name

Principal activity

Class of shares

Holding

Knights Valley Hotels Limited
Hotel Management
Ordinary
100 %
Foley Lodge Limited
Dormant
Ordinary
100 %







2018
2017
£
£

Raw materials and consumables
19,504
20,815

Finished goods and goods for resale
881,881
766,742

901,385
787,557


Page 20

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£


Trade debtors
392,516
421,068

Amounts owed by group undertakings
688,595
996,210

Other debtors
1,250
7,609

Prepayments and accrued income
67,580
122,157

1,149,941
1,547,044


2018
2017
£
£

Cash at bank and in hand
1,952
2,019

Less: bank overdrafts
(142,688 )
(21,874 )

(140,736 )
(19,855 )


2018
2017
£
£

Bank overdrafts
142,688
21,874

Bank loans
80,000
80,000

Trade creditors
366,087
(29,790 )

Amounts owed to group undertakings
22,423,821
22,537,369

Other taxation and social security
416,387
518,661

Other creditors
29,665
3,874

Accruals and deferred income
403,118
361,904

23,861,766
23,493,892


The bank overdraft is secured by a fixed and floating charge over all assets of the company.
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. 

Page 21

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£

Bank loans
2,800,000
2,880,000

2,800,000
2,880,000


The bank loan of £2,800,000 (2017: £2,880,000) is repayable in quarterly instalments of £20,000 starting from September 2016 until June 2020 with a balloon payment at maturity. The loan is secured by a first legal mortgage on the property that it relates to, along with a fixed and floating charge over all of the assets in the company and cross guarantees from certain group companies. The interest rate is base plus 2.25% over the term of the loan.


Analysis of the maturity of loans is given below:


2018
2017
£
£

Amounts falling due within one year

Bank loans
80,000
80,000


80,000
80,000

Amounts falling due 1-2 years

Bank loans
80,000
80,000


80,000
80,000

Amounts falling due 2-5 years

Bank loans
2,720,000
2,800,000


2,720,000
2,800,000


2,880,000
2,960,000


Page 22

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
1,084,313
1,461,905


Financial liabilities


Financial liabilities measured at amortised cost
25,842,261
(25,777,804 )


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed to group undertakings, other debtors and cash at bank and in hand.


Financial liabilities measured at amortised cost comprise trade creditors, bank overdrafts, bank loans, amounts owed to group undertakings and other creditors. 



Page 23

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
2018
2017
£
£
Allotted, called up and fully paid



2,867,895  (2017 -  2,867,895 )  Ordinary Shares shares of £ 1.00  each
2,867,895
2,867,895



Reserves

Profit and loss account

Includes all current and prior year retained profit and losses.

A prior year adjustment has been posted in respect of an impairment of tangible fixed assets which existed at the previous balance sheet date but which had not been reflected in the financial statements.  The impact of this adjustment is to lower tangible fixed assets and reserves by £5,402,789.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted £135,569 (2017: £137,363). Contributions totalling £nil (2017: £nil) were payable to the fund at the balance sheet date and are included in creditors.

2018
2017
£
£


Not later than 1 year
3,580
3,750

Later than 1 year and not later than 5 years
1,790
-

5,370
3,750

The Company is exempt from disclosing related party transactions with other 100% owned members of the Group headed by Stockford Limited by virtue of FRS 102 section 33.1A.

Page 24

 
THE VINEYARD AT STOCKCROSS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
The Company considers Stockford Limited, a company incorporated in England and Wales, to be its ultimate parent company throughout the current and previous years. The Company’s results are included in the consolidated financial statements of Stockford Limited. Copies of the group financial statements for Stockford Limited are available from its registered office: Buckingham House, West Street, Newbury, Berkshire, England, RG14 1BE.


Page 25