Registration Number 00099376 (England and Wales)

THE LEAMINGTON AND COUNTY GOLF CLUB, LIMITED

DIRECTORS’ REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

Company Information Directors: David Chamley

Richard Cumberland (Treasurer) Angela Eadon Graham Ford

Tony Jones Malcolm Lines (Chair)

John O’Kelly Club Manager: Bryan Frazer (Company secretary) Company number: 00099376 Registered office: Golf Lane Whitnash Leamington Spa Warwickshire CV31 2QA Accountants: Harrison Beale & Owen Limited Highdown House 11 Highdown Road Sydenham Leamington Spa Warwickshire CV31 1XT Bankers: Lloyds Bank plc 73 The Parade Leamington Spa Warwickshire CV32 4BB

Contents Page Directors’ report 1 - 2 Accountants’ assurance report 3 Income and expenditure account 4 Balance sheet 5 Notes to the financial statements 6 – 10 Statement of source and application of funds 12

1

Directors’ Report For the Year Ended 31 December 2017

The directors present their Report and the Financial Statements for the year ended 31 December 2017. Principal Activity The principal activity of the Company is the provision of a golf course and other amenities for its members and visitors. The Company is limited by guarantee. Directors The directors who served through the year are as stated below: David Chamley Richard Cumberland (elected March 2017) Alan Murdoch (resigned March 2017) Angela Eadon Graham Ford (resigned December 2017) Tony Jones Malcolm Lines John O’Kelly Financial Results for the year ended 31st December 2017 Following the opening of the new 12th and 18th holes and the resurfacing of the car park in the prior year, 2017 was a year of consolidation. While in 2016, the Club had benefitted from cash injections from Patron Members and from the repayment of VAT, investment during 2017 was necessarily attuned to lower revenues. Indeed, in its “Half Year Bulletin”, the board signalled a potential operating deficit for 2017 of £45,000. Overall revenue in 2017 was £672,789 compared with £864,180 in 2016. This significant revenue reduction resulted from the following variances: £864,180 2016 (£64,800) Patron Memberships (£32,753) Lower subscription revenue (£7,719) Entrance Fees (£79,063) VAT Repayment (£13,407) Bar & Catering (£8,000) Sponsorship £5,621 Green Fees £2,028 Competitions (£3,298) Other £662,789 2017 The final 2017 operating deficit was £33,700 versus the half-year forecast of £45,000. This improvement resulted from successful cost reduction initiatives: course material costs were £89,279 (2016: £99,885); clubhouse costs were £218,653 (2016: £224,486); Bar & Catering costs were £94,831 (2016: £101,029). Payroll costs were £293,726 compared with £274,234 in 2016. This increase, in greater part, stems from the addition of a new greens staff member and from compliance with new HM Government pension provision regulations. Unrecoverable VAT was £32,243 compared with £34,146 in the prior year. Notwithstanding the pressure on revenues, essential capital investment of £33,228 was made in order to maintain and replace greens equipment and to sustain bar & catering operations. The innovative drainage system, first installed on the 13th green, was supplemented with two further installations on the 12th & 15th greens towards the end of the year. Normal depreciation on tangible assets was £88,372 compared with £94,500 in the prior year.

3

Chartered accountants’ independent assurance report on the unaudited financial statements of:

The Leamington and County Golf Club, Limited To the Board of Directors of The Leamington and County Golf Club, Limited We reviewed the financial statements of The Leamington and County Golf Club, Limited for the year ended 31 December 2017, which comprise the Income Statement, Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is 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’. This report is made solely to the Company’s directors, as a body, in accordance with the terms of our engagement letter. Our review has been undertaken so that we may state to the company’s directors those matters we have agreed with them in our engagement letter 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 directors as a body for our work, for this report or the conclusions we have formed. Directors’ responsibility for the financial statements As explained more fully in the Directors’ Report set out on pages 1 to 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Accountants’ responsibility Our responsibility is to express a conclusion based on our review of the financial statements. We conducted our review in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to review historical financial statements and ICAEW Technical Release TECH 09/13AAF Assurance review engagements on historical financial statements. ISRE 2400 (Revised) also requires us to comply with the ICAEW Code of Ethics. Scope of the assurance review A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. We have performed additional procedures to those required under a compilation engagement. These primarily consist of making enquiries of management and others within the company, as appropriate, applying analytical procedures and evaluating the evidence obtained. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing (UK). Accordingly, we do not express an audit opinion on these financial statements. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the financial statements have not been prepared:

• so as to give a true and fair view of the state of the company’s affairs as at 31 December 2017, and of its loss for the year then ended;

• in accordance with United Kingdom Generally Accepted Accounting Practice; and

• in accordance with the requirements of the Companies Act 2006. Harrison Beale & Owen Limited, Chartered Accountants 11 Highdown Road Leamington Spa CV31 1XT 1 March 2018

4

Income and Expenditure account for the year ended 31 December 2017

2017 2016

Notes £ £

Income

Subscriptions 496,108 593,661

Entrance Fees (2,250) 5,469

Green Fees 48,087 42,466

Competitions 4,302 2,274

546,247 643,870

Rent 17,820 17,820

Sundry Income Note 1.4 5,467 95,827

23,287 113,647

Bar/Catering Income Note 4 93,255 106,662

Total Income 662,789 864,180

Expenditure

Course

Wages, NI & Pensions 191,355 173,828

Materials 89,279 99,885

280,634 273,712

Clubhouse

Wages, NI & Pensions 102,371 100,406

Costs 218,653 224,486

321,023 324,892

Bar/Catering

Costs Note 4 94,831 101,029

(Deficit)/Surplus before Depreciation (33,700) 164,546

Depreciation and Loss on Disposals

Course 40,452 46,790

Clubhouse etc. 47,692 48,824

88,144 95,614

Total Expenditure 784,633 795,247

(Deficit)/Surplus (121,844) 68,932

Tax Note 6 0 (4,097)

(Deficit)/Surplus after Tax (121,844) 64,835

6

Notes to the financial statements For the year ended 31 December 2017

1. Statutory Information

The Leamington and County Golf Club, Limited is a private company, limited by guarantee, registered in England and Wales. The company’s registered number and registered office address can be found on the Company Information page.

1.1. Basis of preparing the financial statements

The financial statements are prepared in accordance with the provisions of Section 1A “Small Entities” of Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and the Companies Act 2016. The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year. 1.2. Turnover

Turnover represents amounts receivable for goods and services provided by the company, net of Value Added Tax.

1.3. Tangible fixed assets and depreciation Tangible fixed assets are included at cost.

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected useful life, as follows:

Freehold land - nil Mollington Hill Farm - 2% straight line Greens & bunkers - 2% straight line Clubhouse redevelopment - 2% straight line Other club property & approaches - 10% reducing balance Course machinery & equipment - 25% reducing balance Furniture, fittings & equipment - 10% straight line Computers - 25% straight line Crockery & cutlery - 20% straight line 1.4. Value added tax

Under the rules of VAT, the club is partially exempt and thus not all VAT which the club pays is reclaimable. VAT on some expenditure is fully reclaimable, whereas other expenditure attracts only a partial refund. The amount of partial refund varies from year to year and is calculated by identifying the percentage which income liable to VAT bears to total income.

That part of non-recoverable VAT attributable to the purchase of fixed assets in the year is added to the cost of those assets; for 2017 this was an additional 16% amounting to £5,855 (2016: £18,968). The balance of non-recoverable VAT, £32,243 (2016: £34,146) has been written off to the income and expenditure account.

7

Notes to the financial statements For the year ended 31 December 2017

1.5 Stock

Stock is valued at the lower of cost and net realisable value. Bar stock is valued at a cost of purchase by a professional valuer at £4,234 (2016: £3,572). Other stocks amounting to £1,825 (2016: £4,343) are valued at the lower of cost and net realisable value.

1.6 Pensions

Pensions are provided by contributions to the State Pension Scheme for all staff and by a defined contribution plan for permanent employees.

1.7 Operating lease commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

2. Turnover

The total turnover of the company for the year has been derived from its principal activity wholly undertaken in the UK.

3. Operating surplus 2017 2016 £ £ Operating surplus is stated after charging: Depreciation and loss on disposal of tangible assets 88,144 95,614 Pension charge 5,312 4,543 Operating leases 2,750 2,750

8

Notes to the financial statements For the year ended 31 December 2017

4. Bar, Catering and Events

2017 2017 2016 2016 Bar/Cater Events Bar/Cater Events £ £ £ £

Bar Income 92,967 106,885

Social Event Income - 7,182 - 6,947 92,967 7,182 106,885 6,947

Social Event Expenses - (6,894) - (7,170) 92,967 288 106,885 (223)

Purchases 39,794 - 42,606 -

Add Stock at 1 January 2017 3,096 - 4,335 - 42,890 - 46,941 -

Less Stock at 31 December 2017

(4,234) - (3,096) -

Cost of Sales 38,656 - 43,845 -

Gross Profit 54,311 288 63,040 (223)

% 58.4% - 59.0%

Bar Wages, NI & Pensions (49,528) - (52,092) -

Other Bar Costs (4,715) - (5,484) -

Bar Profit 68 - 5,464 -

Catering Franchise Fee 3,937 - 3,750 -

Kitchen Costs (5,870) - (3,358) -

Net (Loss)/Profit (1,864) 288 5,856 (223)

5. Interest payable and similar charges 2017 2016 £ £

On loans and overdrafts - -

_______ _______ 6. Taxation 2017 2016 £ £ Current year taxation UK Corporation Tax @ 20% - 4,097 _______ _______ - 4,097 _______ _______

9

Notes to the financial statements For the year ended 31 December 2017

7. Tangible fixed assets

Freehold Other Course Furniture

Land & Property & Machinery

& Fittings & Information

Buildings Approaches Equipment Equipment Technology Total £ £ £ £ £ £

Cost

At 1 January 2017 1,118,047 512,458 580,944 202,884 32,338 2,446,670

Additions - 1,964 33,525 5,014 204 40,707

Disposals - - (18,282) (1,168) - (19,450)

At 31 December 2017

1,118,047 514,422 596,187 206,730 32,542 2,467,927

Depreciation

At 1 January 2017 (478,720) (173,717) (392,624) (172,687) (29,124) (1,246,872)

On Disposals - - 18,037 980 - 19,018

Charge for the Year (20,778) (17,375) (40,680) (7,750) (1,789) (88,372)

At 31 December 2017

(499,498) (191,092) (415,267) (179,456) (30,913) (1,316,227)

Net Book Values

At 31 December 2017

618,549 323,329 180,919 27,273 1,629 1,151,700

At 31 December 2016 639,327 338,740 188,320 30,197 3,214 1,199,797

Included in the above freehold land and property is land valued at a cost of £79,157. No

depreciation is provided in respect of this, as in the opinion of the directors, the value of land

is unlikely to decrease.

8. Debtors

2017 2016

£ £

Sundry debtors 1,649 1,649 Prepaid Council Tax 4,879 4,999 Prepaid Security 747 1,791 Other prepayments 934 992 Accrued Income from One-Off VAT Repayment - 79,063 _______ _______ 8,209 88,494 _______ _______

10

Notes to the financial statements For the year ended 31 December 2017

9. Creditors: amounts falling due within one year 2017 2016 £ £ Trade creditors 12,386 31,098

Other taxes and social security costs 21,579 34,673 Accruals and sundry creditors 78,899 40,695 Members' subscriptions in advance 31,714 85,886

_________________

132,708 192,352

The deeds of the Clubhouse, land and buildings are subject to a legal charge in favour of Lloyds Bank plc to secure bank borrowing facilities as and when required.

10. Creditors: amounts falling due 2017 2016 after more than one year £ £ 4% Debenture 830 830 Hire Purchase 4,555 6,507 _______ _______

5,385 7,337

11. Reserves 2017 2016 £ £

Accumulated fund Balance as at 1 January 1,154,597 1,089,762 Surplus/(Deficit) for the year (121,844) 64,835

1,032,753 1,154,597

12. Capital commitments There were no capital commitments at the year end. 13. Leasing Agreements Minimum lease payments under non-cancellable operating leases fall due as follows: 2017 2016 £ £ Within one year 2,750 2,750 Between one and five years 2,750 5,500 _______ _______ 5,500 8,250 _______ _______

11

Notes to the financial statements For the year ended 31 December 2017

14. Cups and trophies

Cups and trophies presented to the company over the years are not included in the balance

sheet but are valued for insurance purposes at £160,000 (revalued in February 2014).

15. Liability of members

The company is limited by guarantee and does not have any share capital. Each member

guarantees to contribute up to a maximum of £2 should the company be wound up within

one year from the date upon which he or she ceases to be a member.

16. Transactions with directors

All directors are members of the club and pay the annual subscription applicable to their

membership category.

17. Controlling interest

There is no overall controlling interest.

12

Notes to the financial statements

For the year ended 31 December 2017

THIS STATEMENT OF SOURCE AND APPLICATION OF FUNDS DOES NOT FORM AN

INTEGRAL PART OF THESE FINANCIAL STATEMENTS

Statement of Source and Application of Funds For the year ended 31 December 2017

2017 2016 £ £

Surplus/(Deficit) on Ordinary trading (121,844) 64,835

Add back non-cash items:

UK Corporation tax 4,097

Depreciation and profit on disposal 88,144 95,614

Cash Generated from operations (33,700) 164,546

Other sources of Cash:

Reduction in Debtors

Decrease in Stock 1,856 1674

Increase in creditors

Proceeds on sale of Fixed Assets 228 200

Total Cash Generated (31,616) 166,420

Use of Funds:

Increase in Debtors (80,285) 79041

Increase in Stock

Decrease in Creditors 49,294 699

Purchase of Fixed Assets 40,707 137,519

Increase/(Decrease) in Bank Balance (41,331) (50,839)

Use of Funds (31,616) 166,420