DRAFT EASTBOURNE & DISTRICT CHAMBER OF COMMERCE LIMITED REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2015

Transcription

1 Company Registration No (England and Wales) EASTBOURNE & DISTRICT CHAMBER OF COMMERCE LIMITED REPORT AND ACCOUNTS

2 COMPANY INFORMATION Directors Company number Registered office Auditors J Banks N C Beckhurst M McFadden R M W Naylor W J Plumridge A Rainer Jones A Pugh N Fisher T Cobb S Pierce D L Godfrey M Ogilvie M Lulham M Gietzen L Salway (Appointed 1 September 2015) W Callaghan (Appointed 1 September 2015) 7 Hyde Gardens Eastbourne East Sussex BN21 4PN Price & Company Gildredge Road Eastbourne East Sussex BN21 4SH Business address 7 Hyde Gardens Eastbourne East Sussex BN21 4PN

3 CONTENTS Page Directors' report 1-2 Independent auditors' report 3-4 Profit and loss account 5 Balance sheet 6 Notes to the financial statements 7-14

4 DIRECTORS' REPORT The directors present their report and financial statements for the year ended 31 December Principal activities The principal activity of the company is to promote the businesses of its members through a range of services and events. Directors The following directors have held office since 1 January 2015: J Banks N C Beckhurst M McFadden R M W Naylor W J Plumridge G S Stone (Resigned 31 August 2015) A Rainer Jones A Pugh N Fisher T Cobb S Pierce D L Godfrey M Hunt (Resigned 20 May 2015) I Lucas (Resigned 20 May 2015) M Ogilvie M Lulham M Gietzen L Salway (Appointed 1 September 2015) W Callaghan (Appointed 1 September 2015) T C Corke (Resigned 16 May 2015) Auditors Price & Company were appointed during the year to serve until the next Annual General Meeting

5 DIRECTORS' REPORT (CONTINUED) Statement of directors' responsibilities The directors are responsible for preparing 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently; - make judgements and accounting estimates that are reasonable and prudent; - 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 enable them to ensure that the financial statements comply with the Companies Act They 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. Statement of disclosure to auditors So far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information. This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act On behalf of the board... T Cobb Director

6 INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EASTBOURNE & DISTRICT CHAMBER OF COMMERCE LIMITED We have audited the financial statements of Eastbourne & District Chamber of Commerce Limited for the year ended 31 December 2015 set out on pages 5 to 14. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard for Smaller Entities (effective January 2015) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities). 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 Our 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 auditors' 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. Respective responsibilities of directors and auditors As explained more fully in the Directors' Responsibilities Statement set out on pages 1-2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors. Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and nonfinancial information in the Directors' Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. Opinion on financial statements In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2015 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and - have been prepared in accordance with the requirements of the Companies Act Opinion on other matter prescribed by the Companies Act 2006 In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements

7 INDEPENDENT AUDITORS' REPORT (CONTINUED) TO THE MEMBERS OF EASTBOURNE & DISTRICT CHAMBER OF COMMERCE LIMITED Matters on which we are required to report by exception We have nothing to report in respect of the following matters where 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; or - the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report. Mr Malcolm Preece BA FCA DChA (Senior Statutory Auditor) Gildredge Road for and on behalf of Price & Company Eastbourne Chartered Accountants East Sussex Statutory Auditor BN21 4SH

8 PROFIT AND LOSS ACCOUNT Notes Turnover 120, ,153 Cost of sales (29,550) (27,298) Gross profit 90,851 86,855 Administrative expenses (71,672) (70,743) Other operating income Operating profit 2 19,346 17,028 Other interest receivable and similar income Interest payable and similar charges (711) (907) Profit on ordinary activities before taxation 18,651 16,138 Tax on profit on ordinary activities 4 (3,775) (3,055) Profit for the year 11 14,876 13,

9 BALANCE SHEET AS AT 31 DECEMBER Notes Fixed assets Tangible assets 5 and 6 445, ,148 Current assets Debtors 8 19,142 24,189 Cash at bank and in hand 45,074 42,903 64,216 67,092 Creditors: amounts falling due within one year 9 (77,101) (84,812) Net current liabilities (12,885) (17,720) Total assets less current liabilities 432, ,428 Creditors: amounts falling due after more than one year 10 (19,694) (30,027) 412, ,401 Capital and reserves Revaluation reserve , ,205 Profit and loss account , ,196 Members' funds 412, ,401 These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and the Financial Reporting Standard for Smaller Entities (effective January 2015). Approved by the Board for issue on N C Beckhurst T Cobb Director Director Company Registration No

10 NOTES TO THE FINANCIAL STATEMENTS 1 Accounting policies 1.1 Accounting convention The financial statements are prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015). 1.2 Compliance with accounting standards The financial statements are prepared in accordance with applicable United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except as otherwise stated). 1.3 Turnover Turnover represents amounts receivable for memberships, meetings and events and property rents net of VAT. 1.4 Tangible fixed assets and depreciation Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows: Freehold land & buildings Fixtures, fittings & equipment 50 years (from 10 April 2003) on buildings element only 5-10 years Investment properties are included in the balance sheet at their open market value. Depreciation is provided only on those investment properties which are leasehold and where the unexpired lease term is less than 20 years. Although this accounting policy is in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the directors compliance with the standard is necessary for the financial statements to give a true and fair view. Depreciation or amortisation is only one of many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified. 1.5 Group accounts The financial statements present information about the company as an individual undertaking and not about its group. The company and its subsidiary undertaking comprise a small-sized group. The company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts

11 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 2 Operating profit Operating profit is stated after charging: Depreciation of tangible assets 990 1,017 Auditors' remuneration 1,575 1,575 3 Investment income Bank interest Taxation Domestic current year tax U.K. corporation tax 3,775 3,055 Total current tax 3,775 3,

12 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 5 Tangible fixed assets Land and Plant and Total buildings machinery etc Cost or valuation At 1 January ,264 30, ,911 Additions At 31 December ,264 31, ,609 Depreciation At 1 January ,445 27,318 50,763 Charge for the year 2, ,805 At 31 December ,445 28,123 53,568 Net book value At 31 December ,819 3, ,041 At 31 December ,819 3, ,148 The valuation of 7 Hyde Gardens, Eastbourne was made as at 31 December 2009 by Stiles Harold Williams, Chartered Surveyors as Internal Valuers. The valuation was in accordance with the requirements of the RICS Valuation Standards, 6th Edition. The valuation of the property was on the basis of Market Value. The Valuer's opinion of Market Value was primarily derived using evidence of comparable transactions. On an historical cost basis these would have been included at an original cost of 11,166 ( ,166), and aggregate depreciation of 6,763 (2014-6,578)

13 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 6 Tangible fixed assets Investment properties Cost or valuation At 1 January 2015 & at 31 December ,000 Net book value At 31 December ,000 At 31 December ,000 The valuation of 6 Hyde Gardens, Eastbourne was made as at 31 December 2009 by Stiles Harold Williams, Chartered Surveyors as Internal Valuers. The valuation was in accordance with the requirements of the RICS Valuation Standards, 6th Edition. The valuation of the property was on the basis of Market Value. The Valuer's opinion of Market Value was primarily derived using evidence of comparable transactions. No depreciation is provided in respect of this property

14 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 7 Fixed asset investments Shares in group undertakings and participating interests Cost or valuation At 1 January 2015 & at 31 December Net book value At 31 December Controlling interest: The Chamber has voting control of Eastbourne & District Enterprise Agency Limited, a company which has no share capital. Company Subsidiary undertakings Eastbourne & District Enterprise Agency Limited Country of registration or incorporation England & Wales The aggregate amount of capital and reserves and the results of these undertakings for the last relevant financial year were as follows: Capital and reserves Eastbourne & District Enterprise Agency Limited Profit/(loss) for the year 31 March 31 March Principal activity Enterprise Agency 398,533 14,

15 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 8 Debtors Trade debtors 4,245 13,385 Other debtors 14,897 10,804 19,142 24,189 9 Creditors: amounts falling due within one year Bank loans and overdrafts 10,200 9,960 Trade creditors 24,554 13,888 Amounts owed to group undertakings and undertakings in which the company has a participating interest 21,304 20,589 Taxation and social security 3,775 5,493 Other creditors 17,268 34,882 77,101 84, Creditors: amounts falling due after more than one year Other creditors 19,694 30,027 Analysis of loans Wholly repayable within five years 29,894 39,987 Included in current liabilities (10,200) (9,960) 19,694 30,027 On 3 March 2003 Eastbourne & District Chamber of Commerce borrowed 116,000 at a rate of 1.5% over HSBC base rate for 20 years. HSBC have a first legal charge over 6 and 7 Hyde Gardens, Eastbourne

16 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 11 Statement of movements on reserves Revaluation Profit and loss reserve account Balance at 1 January , ,196 Profit for the year - 14,876 Depreciation written back (1,815) - Balance at 31 December , , Company limited by guarantee The amount of the guarantee is limited to 25 pence per member. At 31 December 2015, there were 473 members (2014: 467 members). 13 Transactions with directors During the year, the company paid the following amounts for fees and services supplied by companies and businesses connected with directors of the company: 2, to Zest Printing (J. Banks); 360 to Identity Ltd (M. Gietzen); and 1, to Stiles Harold Williams (M. McFadden). All payments relate to normal arms length business transactions

17 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) 14 Related party relationships and transactions The Chamber has acquired voting control of Eastbourne & District Enterprise Agency Limited (EDEAL), which was set up as a local enterprise agency to promote the creation of all types of business concerns, and the expansion, improvement and development of businesses generally. The two organisations work together and share costs. The following expenses have been charged to EDEAL by the Chamber during the year: Chief Executive's salary 18,333 (2014: 22,224), salaries 1, (2014: Nil), Town Centre Management Nil (2014: 409) and other overheads 3, (2014: Nil). The following expenses have been charged to the Chamber by EDEAL during the year: Chief Executive's salary 6, (2014: Nil), salaries 7, (2014 Nil) and other overheads (2014: Nil). The salary, national insurance and pension contributions of the Chamber's Chief Executive was paid via EDEAL's payroll scheme and 50% of the cost then re-charged to the Chamber as set out above. Included in 'Creditors: amounts falling due within one year' is an amount of 21,304 (2014: 20,589) owed to EDEAL at the end of the financial period

18 DETAILED TRADING AND PROFIT AND LOSS ACCOUNT Turnover Subscriptions - members 58,796 49,246 Property rents 30,750 26,775 Meetings and events 26,559 30,546 Diary adverts 4,296 7, , ,153 Cost of sales Meetings and events 23,451 21,400 Diary costs 6,099 5,898 (29,550) (27,298) Gross profit 75.46% 90, % 86,855 Administrative expenses 71,672 70,743 19,179 16,112 Other operating income Sundry income Operating profit 19,346 17,028 Other interest receivable and similar income Bank interest received Interest payable Loan interest Other interest paid 3 - (711) (907) Profit before taxation 18,651 16,

19 SCHEDULE OF ADMINISTRATIVE EXPENSES Administrative expenses Wages and salaries 41,258 36,885 Rates (1,778) 3,677 Insurance 1, Light and heat 31 1,194 Cleaning 899 1,864 Repairs and maintenance 1,424 1,058 Printing, postage and stationery 3,557 6,026 Advertising 3,297 4,375 Telephone 1,964 1,056 Computer running costs 2,543 1,475 Travelling expenses Legal and professional fees 2,010 1,613 Accountancy 8,204 3,449 Audit fees 1,575 1,575 Bank charges Credit card charges Bad and doubtful debts 1, Sundry expenses 1,395 1,935 Depreciation on freehold property Depreciation on fixtures, fittings and equipment ,672 70,