REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2016
FITZMAURICE HOUSE LIMITED AND SUBSIDIARY (A company limited by guarantee) REGISTERED NO: 00711350 Registered number: 00711350
FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
COMPANY INFORMATION
Directors David Whitehouse Geraldine Dooley Stephen Cooney Richard Parry Charles Perrett Samantha Reed Michael Dixon (appointed 1 July 2016) Roger Hepher (appointed 1 July 2016) Sophie Morrison (appointed 1 July 2016) Malcolm James North (appointed 1 July 2016)
Company secretary Timothy Cagney
Registered number 00711350
Registered office 9 Fitzmaurice Place Berkeley Square London W1J 5JD
Independent auditors haysmacintyre 26 Red Lion Square London WC1R 4AG
Bankers Allied Irish Bank 10 Berkeley Square London W1J6AA
Solicitors Bates Wells Braithwaite 10 Queen Street Place London EC4R 1BE FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
CONTENTS
Page Group Strategic Report 1 - 5 Directors' Report 6 - 10 Independent Auditors' Report 11 - 12 Consolidated Statement of Comprehensive Income 13 Consolidated Statement of Financial Position 14 Company Statement of Financial Position 15 Consolidated Statement of Changes in Equity 16 Company Statement of Changes in Equity 17 Consolidated Statement of Cash Flows 18 Notes to the Financial Statements 19 - 30 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
GROUP STRATEGIC REPORT FOR THE YEAR ENDED 31 DECEMBER 2016
Chairman’s Statement
As is customary I wish to thank all those who work so hard for the benefit of the Club. This includes the Council, the Commissioners, the Members of the sub-committees of Council and the voluntary organisers of many of the groups and events for Members. Equal thanks go to the Secretary and all his staff whether they be in housekeeping, catering, administration, reception, sports or maintenance. The Members appreciate the cheerfulness and huge efforts of the staff.
During 2016 Penny Dussek and Marc Corbett left the Council and we thank them for their many contributions to its work. During that year we welcomed Michael Dixon, Andrew Robinson, Roger Hepher and James North as new members to the Council.
The Brexit vote has led to some uncertainties for clubs. The drop in the value of the pound has had an impact on the prices of food and beverages. Many of our staff are from EU countries and I am pleased to report that there has been a reduction in staff turnover in spite of the concerns about their status. This is very much to the credit of the managers of the Club and it is helped by us trying to pay staff appropriately and improve working conditions. However, ongoing increases in the London Living Wage do present another challenge for us.
We made efforts in 2016 to move our bedroom modernisation/refurbishment programme on to a stronger footing. We are trying to provide good and attractive accommodation at a cost that people can afford but the prices have to reflect our expenditure on the rooms and our expensive central London location.
Our sports provision continues to flourish and many of our sportsmen and sportswomen have been very successful in competitions. During 2016 we spent much time planning improvements to be undertaken in the pool area which would be carried out in 2017. It is worth noting that the Council, committees and staff devote large amounts of time to working out the logistics of our improvements and developments. Similar efforts are devoted to developing, advertising and running our many social events, some of which are one-offs and others which occur every month. The Lansdowne is like a swan which glides along but with a great deal of paddling going on below the surface.
Our financial results are detailed and commented upon elsewhere so I will restrict myself to a few comments. Our turnover and gross profits have increased but costs are rising so we inevitably have to increase prices and subscriptions. We try to reduce the impact of those increases as far as we can by careful budgeting. Members will have read of increases in business rates and although subject to appeal, we know we will be hit hard by this as will many other London businesses. We are in better shape than some organisations to deal with these challenges but we will have to be ready to adapt to continue to flourish. We are an unusual Club in our mixed membership in terms of age, gender, profession, country, overseas and town Members and this means we will continue to offer a wide range of services and events. So support your Club, make good use of it and enjoy.
David Whitehouse Club Chairman
Page 1 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2016
Treasurer’s Statement
The Club had a successful year from a financial perspective in 2016 and met its budgetary aims. Key performance indicators that the Club tracks are turnover by category, operating surplus before depreciation, interest and tax, cash in hand and capital spending.
Turnover levels in 2016 increased by £0.30m (3.4%) versus the prior year from £9.04m to £9.34m This growth was driven by an increase in catering income which was £0.32m (12.7%) higher than the prior year due to the successful opening of the refurbished Dining Room in May 2016 and banqueting kitchen in October 2016. The new kitchen has allowed the Club to host concurrent events in the function rooms and Ballroom, whilst allowing the Dining Room kitchen to operate without service interruption. This was a key project in 2016 and has addressed the main source of historical Dining Room complaints. Since reopening, the Dining Room has experienced a 62% rise in covers and 58% rise in turnover.
Accommodation revenue decreased £0.11m (4.0%) versus the prior year as a result of lower occupancy levels due to the refurbishment programme lowering the number of available rooms. This was anticipated and occupancy levels were in line with budget at 81%. The weekend discounted rate of £125 per room including breakfast continues to be popular and successfully drives members to use their club over weekends, a key aim of the Council.
In other revenue categories there was limited growth in 2016. Subscription income was £0.05m and sports income was £0.04m higher than 2015. Overall at the end of 2016 the membership was 8,487.
Costs also increased during 2016. Combined direct costs and overheads excluding depreciation increased by £0.19m (2.5%) versus the prior year from £7.62m to £7.81m. This was driven by total payroll costs which increased by £0.11m (2.7%) in 2016. The Club increased the lowest paid staff’s salaries to help reflect the London Living Wage increase in November 2015 to £9.40 per hour. However, the impact of this was mitigated through savings in back office functions. These included the Administration and Subscriptions departments being streamlined and several vacancies not being filled. Total staff at year end was 122.
Food and beverage and other variable catering costs were £0.12m (9.2%) higher versus the prior year. In part this was driven by the adverse £:€ exchange rate movement following the June 2016 decision to exit Europe. However careful management of food menus resulted in the catering department increasing contribution levels versus the prior year.
Operating surplus before depreciation, interest and tax increased by £0.09m (6.1%) versus the prior year from £1.48 to £1.53m.
Capital spending in 2016 was £2.8m, £1.3m higher than the previous year. Major projects completed included the refurbishment of the second floor Dining Room, Piano Bar and toilets, the banqueting kitchen, a new ground floor cloakroom, refurbishments to the Shelburne and Findlay rooms and ongoing bedroom upgrades. Following professional advice from structural engineers, the Council decided not to pursue a project to create additional 6th floor bedrooms. The disruption to members as a result of closing the Courtyard and sports area for up to 20 weeks to strengthen structural steel beams across the swimming pool was viewed by Council as too great.
At the end of the year the Club had a healthy cash balance of £1.49m and no bank debt. This positive cash flow and continued generation of an operating surplus allows the Club to reinvest in the building, replace worn out assets and develop and renew existing areas.
Risks and uncertainties
Management and staff – The Club’s performance depends to a large extent on its managers and staff. Resignations from key members of staff could adversely impact the Club's performance. To mitigate this the Club has a staff fund and management bonus scheme in place to attract and retain the key staff members. Page 2 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2016
Service levels – Maintaining service levels to Members is essential to preserve their regular usage of the Club and minimise member resignation levels. To mitigate these risks the Club invests in training programmes for staff members, employs a third party organisation to carry out ‘mystery shopper reviews’ and seeks regular feedback from Members to review and address any performance issues.
Membership levels – The Club continues to experience a slight decline in female membership and the decision to exit the European Union has generated uncertainty for jobs in the financial services sector and the Club's European members who live in the UK. To mitigate this we will continue to offer exceptional value for our Members and offer an exciting events programme to attract new Members to account for any resignations.
Ability to afford future enhancements – Construction inflation is currently running at c.5.0% per annum. The operating surplus will need to rise by a similar percentage to ensure we continue to maintain current areas of the Club. To achieve this, the Club will continue to identify and implement operating efficiencies rather than simply increasing subscription and other prices.
Financial headwinds – These include the London Living Wage annual increase (currently averaging c.4%) and the large annual rates increase as a result of the Government changing the way business rates are calculated. Going forward we will continue to absorb the cost increases as far as possible and limit price and subscription rises. Although food and beverage prices increased by 7% in January 2017, we increased the discount members receive by paying through their charge account from 5 to 10% at the same time.
Stephen Cooney Club Treasurer
Page 3 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2016
Secretary’s Statement
This hashas beenbeen anan excitingexciting yearyear forfor thethe Clubclub as we continue to deliver on all aspects of ourour strategy to ensure that thethe Clubclub continuescontinues toto bebe aa welcomingwelcoming placeplace forfor MembersMembers and theitheirr guests.
We delivereddelivered aa numbernumber ofof majormajor projectsprojects thisthis year, year including:
• TotallyThe complete refurbishing refurbishment the Dining Room,of the whichDining included Room, reinventingwhich included the menus,not only developing the decoration staff and and providingfurnishings an but overall also good reinventing experience the menufor Members and developing and their staffgues ts.to provide To date an the exceptional Member overall feedbackexperience has for been Members very good and andtheir we guests. will continue To date to thefocus feedback on quality has and been the fantasticexperience and so we that will Memcontinuebers toand focus their on guests quality return and thetime experience and again. so that Members and their guests return time and • Weagain. developed a new business centre on the fourth floor. This has proved very popular with • Mem We havebers makingdeveloped very agood new use business of the privatecentre boothson the and fourth the floor.meeting This rooms has notproved to me veryntion popular the freewith teaMembers and coffee. making good use of the private booths and the meeting rooms and enjoying the • Ourcomplimentary cloakroom wastea and expanded coffee onand offer. refurbished providing extra room for coats, jackets and • luggage.Our cloakroom was expanded and refurbished providing safe and secure extra room for coats, • Thejackets Findlay and Roomluggage. was totally refurbished and is now one of our most popular rooms used by • MemThe bersFindlay for meetingsRoom was and totally especially refurbished for private and lunchesis now oneand ofdinners. our most popular rooms, used by Members for meetings and especially for private lunches and dinners. Once again our social scene has been at the heart of ensuring our club is a vibrant and exciting place to meet Onceother againMembers. our social Our Sumsceneme hasr Party been a ndat theWi nterheart Ball of ourwere Club, very ensuring popular. it Cishristmas a vibrant welcom and excitinged the place return to of meet the andJazz socialise at the Movies with fellow cabaret Members. night evening Our Summer and the Party ever andpopular Winter Bluthner Ball were Concerts as ever and very Reels well-attended Christmas Ball.and positivelyOur Club received.Supper proved Christmas to be welcomed very popular the return with ma of nythe n ‘Jazzights atsold the out Movies’ and ourCabaret Autum Nightn truffle and thedinner, ever-popular Sabrage evening and Fashion event all received excellent feedback. The Arts Club had some wonderful speakers as did Blüthner Concerts and Reels Christmas Ball were again well-attended and enjoyed by all. Our Club Supper our Women of the World events and we received rave reviews for the Porter and Gershwin evening. Various proved to be a favourite amongst Members with many nights sold out and our Autumn Truffle Dinner, Sabrage interests groups across the club had multiple events, talks and visits throughout the year including Film Night, Evening and Fashion Event all received excellent feedback. The Arts Club had some wonderful speakers as did Garden Group visits, Bridge tournaments and lively Literary debates. our Women of the World events and we received rave reviews for the Porter and Gershwin evening. Various interest groups across the Club had fabulous events, talks and visits throughout the year including Film Night, We have introduced new sports classes and continue to offer a number of different activities so that all GardenMembers Group and theirvisits, guests Bridge can tournaments enjoy our wonderfuland lively Literaryfacilities. Group We are discussions. very proud that again this year our Squash team won the Bath Cup for the seventh successive year, which is a tremendous achievement. The Ski team Weand have Swim introducedming team new also sports achieved classes winning and successcontinue andto offer Mem a bersnumber enjoy ofed different many dactivitiesifferent eventsso that and all Members activities andincluding their golf,guests power can boatenjoy racing, our excellent fencing, sporting fitness and facilities. persona Wel training. are very proud that again this year our Squash team won the Bath Cup for the seventh successive year, which is a tremendous achievement. The Ski team andI would Swimming like to thankteam alsoall of achieved our staff winning for their success fantastic and support Members as they enjoyed continue many to different deliver eventsan excellent and activities service includingthroughout golf, the clay club shooting, and I am power delighted boat racing,that we fencing, again ma fitnessnaged and to personalreduce staff training. turnover by a further 9%. The Lansdowne Academy for staff development has been enhanced providing opportunities for our staff to nurture Itheir would skills. like to thank all of our staff for their fantastic support as they continue to deliver an excellent service throughout the Club and I am delighted that we again managed to reduce staff turnover by a further 9%. The LansdowneOne of the Academykey strengths for staff of the development club is the hascommitment also been from further so enhanced,may people providing to enhance opportunities our exceptional for our staffclub toand nurture I would their like skills. to take this opportunity to thank everyone for their enthusiasm and tireless energy during 2016.
One of the key strengths of the Lansdowne Club is the commitment from so many people to enhance our exceptional Club and I would like to take this opportunity to thank everyone for their enthusiasm and tireless energyTim Cagney during 2016. Club Secretary and CEO
Tim Cagney Club Secretary and CEO
Page 4 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
GROUP STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2016
This report was approved by the board on 25 April 2017 and signed on its behalf.
Stephen Cooney (Treasurer) Director
Page 5 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2016
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the fifty fifth Annual General Meeting (the “Meeting”) of Fitzmaurice House Limited (the “Company”) will be held at the Registered Office of the Company, 9 Fitzmaurice Place, Berkley Square, London, W1J 5JD on 29th June 2017 at 18:00 for the following purposes:
Ordinary Business
1. To adopt the accounts for the year ending 31 December 2016;
2. To re-appoint the auditors;
3. Appointment of the Council Members in accordance with section 40 of the Articles of Association;
Special Business
To consider and if thought fit, to pass the six resolutions below to amend the Articles of Association of the Company, which will be proposed separately as special resolutions.
Please see the notes to the Notice of the Annual General Meeting, which are included below
SPECIAL RESOLUTIONS
1. THAT the definition of “The Council” at Article 1 be amended so that it reads: “The Council for the time being of the Association, the members of which, for the avoidance of doubt, are the company law directors of the Association.”
2. THAT the second and third sentences of Article 22 (“On a show of hands a Member present only by proxy shall have no vote. A proxy must be a Member.”) be deleted.
3. THAT:
3.1 Article 30 be deleted in its entirety and replaced with: “All members of the Council shall be appointed for terms of three years”;
3.2 Article 31 be amended so that it reads: “A member of the Council other than the Chairman may serve for a maximum of two consecutive terms of office, after which he or she must retire, and may not be reappointed until the earlier of:
a. the anniversary of the commencement of his break from office; and b. if applicable, the Annual General Meeting following the Annual General Meeting at which his break from office commenced.
For the avoidance of doubt, this Article 31 shall not apply to the Chairman, who shall be appointed and shall retire in accordance with Article 42.”
3.3 The heading “Rotation and Election of Council Members” be amended so that it reads “Election of Council Members”;
3.4 Articles 38 and 39 (retirement by rotation) be deleted in their entirety;
3.5 The defined term “Committee” be deleted at Article 1;
Page 6 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2016
3.6 Article 42(c) be amended so that it reads: “No person shall hold the office of Chairman for more than four continuous years and on the expiry of his period of office as Chairman, such person shall also automatically cease to be a member of the Council.” and
3.7 A new Article 42(d) be added, as follows: “A Chairman may serve as a member of Council for an additional term of up to 3 years if required in order to complete his maximum four year term of office as Chairman. For the avoidance of doubt, this Article means that a Chairman may serve as a member of Council for a maximum of 9 consecutive years.”
4. THAT:
4.1 After Article 50 (which if Resolution number 3 above is passed will become Article 48), insert the following:
“MEMBERS OF THE COUNCIL’S INTERESTS AND MANAGEMENT OF CONFLICTS OF INTERESTS
49.1 Unless Article 49.2 applies, a member of Council must declare the nature and extent of:
(a) any direct or indirect interest which he or she has in a proposed transaction or arrangement with the Association; and (b) any duty or any direct or indirect interest which he or she has which conflicts or may conflict with the interests of the Association or his duties to the Association.
49.2 There is no need to declare any interest or duty of which the other members of the Council are, or ought reasonably to be, already aware.
49.3 If a member of Council’s interest or duty cannot reasonably be regarded as likely to give rise to a conflict of interest or a conflict of duties with or in respect of the Association, he or she is entitled to participate in the decision-making process, to be counted in the quorum and to vote in relation to the matter. Any uncertainty about whether a member of Council’s interest or duty is likely to give rise to a conflict shall be determined by a majority decision of the other members of the Council taking part in the decision-making process.
49.4 If a member of Council’s interest or duty gives rise (or could reasonably be regarded as likely to give rise) to a conflict of interest or a conflict of duties with or in respect of the Association, he or she may participate in the decision-making process and may be counted in the quorum and vote unless:
(a) the decision could result in the member of Council or any person who is Connected with him or her receiving a financial benefit not available to all the other members of the Council; (b) the decision could result in a Member with whom a member of Council is Connected receiving a benefit not available to all the other Members within the same category of membership; (c) the decision relates to a complaint or disciplinary issue involving a Member with whom the member of Council is Connected; or (d) a majority of the other members of the Council participating in the decision-making process decide to the contrary, in which case he or she must comply with Article 49.5.
Page 7 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2016
49.5 If a member of Council with a conflict of interest or conflict of duties is required to comply with this Article 49.5, he or she must:
(a) take part in the decision-making process only to such extent as in the view of the other members of the Council is necessary to inform the debate; (b) not be counted in the quorum for that part of the process; and (c) withdraw during the vote and have no vote on the matter.
49.6 Where a member of Council or person Connected with him or her has a conflict of interest or conflict of duties and the member of Council has complied with his obligations under these Articles in respect of that conflict:
(a) the member of Council shall not be in breach of his duties to the Association by withholding confidential information from the Association if to disclose it would result in a breach of any other duty or obligation of confidence owed by him or her; and (b) the member of Council shall not be accountable to the Association for any benefit expressly permitted under these Articles which he or she or any person Connected with him or her derives from any matter or from any office, employment or position.” and
4.2 The following definition be added at Article 1:
“Connected Any person falling within one of the following categories:
(a) any spouse, civil partner, parent, child, brother, sister, grandparent or grandchild of a member of Council; or (b) the spouse or civil partner of any person in (a); or (c) any other person in a relationship with a member of Council which may reasonably be regarded as equivalent to such a relationship as is mentioned at (a) or (b); or (d) any company, partnership or firm of which a member of Council is a paid director, member, partner or employee, or shareholder holding more than 1% of the capital.”
5. THAT Article 58(c) (which if Resolutions 3 and 4 above are passed will become Article 57(c)) be amended so that it reads: “To receive all minutes of meetings and accounts of the Council and, on request, any committees or sub-committees of the Council and, on request, any other documents which are necessary in order for the Commissioners to oversee the proper governance of the Club, subject to the Commissioners being bound by the same confidentiality obligations, if any, as Council members;”
6. THAT all the Articles and all cross-references to them be renumbered appropriately taking account of those of resolutions 1-5 that are passed.
NOTE: A copy of the Articles of Association, amended to show all of the changes proposed by the resolutions, is available at the Club’s website at www.lansdowneclub.com/members/our-club/agm/.
As a member of the Company, you are entitled to appoint a proxy to exercise all or any of your rights to attend, speak and vote at the Meeting and you should have received a proxy notice with the notice of meeting. You can only appoint a proxy using the procedures set out in the notes to the proxy notice.
By order of the Board on the 25 April 2017
Timothy Cagney
Company Secretary Fitzmaurice House Limited (company number 00711350) 9 Fitzmaurice Place, London, W1J 5JD Page 8 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
DIRECTORS' REPORT FOR THE YEAR ENDED 31 DECEMBER 2016
The directors present their report and the financial statements for the year ended 31 December 2016.
Directors' responsibilities statement
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 the Group and of the surplus or deficit of the Group for that period. In preparing these financial statements, the directors are required to: select suitable accounting policies for the Group's financial statements and then apply them consistently; make judgments 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 Group 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 the Group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The surplus for the year, after taxation, amounted to £564,114 (2015 - £625,260).
Directors
The directors who served during the year were:
David Whitehouse (Chairman) Penny Dussek (resigned 1 July 2016) Marc Corbett (resigned 1 July 2016) Geraldine Dooley Andrew Robinson (appointed 1 July 2016, resigned 28 February 2017) Stephen Cooney (Treasurer) Richard Parry Nicholas Stockdale (resigned 28 February 2017) Charles Perrett Samantha Reed Michael Dixon (appointed 1 July 2016) Roger Hepher (appointed 1 July 2016) Sophie Morrison (appointed 1 July 2016) Malcolm James North (appointed 1 July 2016)
The directors retiring by rotation are Richard Parry, Charles Perrett and Samantha Reed. Richard Parry and Charles Perrett, being eligible, offer themselves for re-election. Samantha Reed is not standing for re-election.
Page 9 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2016
Disclosure of information to auditors
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 and the Group's auditors are 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 and the Group's auditors are aware of that information.
Post balance sheet events
There have been no significant events affecting the Group since the year end.
Auditors
The auditors, haysmacintyre, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 25 April 2017 and signed on its behalf.
Stephen Cooney (Treasurer) Director
Page 10 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FITZMAURICE HOUSE LIMITED
We have audited the financial statements of Fitzmaurice House Limited for the year ended 31 December 2016, set out on pages 13 to 30. The relevant financial reporting framework that has been applied in their preparation is the Companies Act 2006 and the 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 members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. 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 on page 9, 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 Financial Reporting Council's Ethical Standards for Auditors.
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements is provided on the Financial Reporting Council's website at www.frc.org.uk/auditscopeukprivate.
Opinion on financial statements
In our opinion the financial statements:
give a true and fair view of the state of the Group's and the parent Company's affairs as at 31 December 2016 and of the Group's profit 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit, the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with those financial statements and such reports have been prepared in accordance with applicable legal requirements.
In the light of our knowledge and understanding of the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report and the Directors' Report.
Page 11 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FITZMAURICE HOUSE LIMITED (CONTINUED)
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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or the parent Company 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.
Simon Wilks (Senior Statutory Auditor) for and on behalf of haysmacintyre Statutory Auditors
26 Red Lion Square London WC1R 4AG 25 April 2017
Page 12 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2016
2016 2015 Note £ £
Turnover 4 9,341,426 9,038,480 Cost of sales (4,030,142) (3,914,498)
GROSS PROFIT 5,311,284 5,123,982 Administrative expenses (4,732,125) (4,488,473) Fair value movements 37,776 55,000
OPERATING PROFIT 5 616,935 690,509 Interest payable and expenses 7 (53,137) (69,749)
PROFIT BEFORE TAXATION 563,798 620,760 Tax on profit 316 4,500
PROFIT FOR THE YEAR 564,114 625,260
PROFIT FOR THE YEAR ATTRIBUTABLE TO: Owners of the parent Company 564,114 625,260
564,114 625,260
There was no other comprehensive income for 2016 (2015:£NIL).
The notes on pages 19 to 30 form part of these financial statements.
Page 13 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00711350
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2016
2016 2015 Note £ £ FIXED ASSETS Tangible assets 10 19,350,781 17,455,002
19,350,781 17,455,002 CURRENT ASSETS Stocks 12 107,991 113,646 Debtors: amounts falling due within one year 13 496,516 363,243 Cash at bank and in hand 14 1,491,392 2,567,776
2,095,899 3,044,665 Creditors: amounts falling due within one year 15 (3,441,169) (3,020,494)
NET CURRENT (LIABILITIES)/ASSETS (1,345,270) 24,171 TOTAL ASSETS LESS CURRENT LIABILITIES 18,005,511 17,479,173 Creditors: amounts falling due after more than one year 16 (53,408) (91,184)
NET ASSETS 17,952,103 17,387,989
CAPITAL AND RESERVES Revaluation reserve 18 7,317,735 7,317,735 Profit and loss account 18 10,223,321 9,659,207 EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY 17,541,056 16,976,942 Non-controlling interests 411,047 411,047
17,952,103 17,387,989
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 April 2017.
Stephen Cooney (Treasurer) Director The notes on pages 19 to 30 form part of these financial statements.
Page 14 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee) REGISTERED NUMBER: 00711350
COMPANY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2016
2016 2015 Note £ £ FIXED ASSETS Tangible assets 10 11,350,781 9,455,002 Investments 11 157,526 157,526
11,508,307 9,612,528 CURRENT ASSETS Stocks 12 107,991 113,646 Debtors: amounts falling due within one year 13 1,036,458 656,558 Cash at bank and in hand 14 1,195,795 2,518,807
2,340,244 3,289,011 Creditors: amounts falling due within one year 15 (3,441,168) (3,020,494)
NET CURRENT (LIABILITIES)/ASSETS (1,100,924) 268,517 TOTAL ASSETS LESS CURRENT LIABILITIES 10,407,383 9,881,045
Creditors: amounts falling due after more than one year 16 (53,408) (91,184)
NET ASSETS EXCLUDING PENSION ASSET 10,353,975 9,789,861
NET ASSETS 10,353,975 9,789,861
CAPITAL AND RESERVES Profit and loss account 18 10,353,975 9,789,861
10,353,975 9,789,861
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 April 2017.
Stephen Cooney (Treasurer) Director The profit and loss account for the parent company is equal to the profit and loss for the group.
Page 15 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS FUNDS FOR THE YEAR ENDED 31 DECEMBER 2016
Attributable to owners of Revaluation Profit and loss parent Non-controlling reserve account Company interests Total equity £ £ £ £ £ At 1 January 2016 7,317,735 9,659,207 16,976,942 411,047 17,387,989
TOTAL COMPREHENSIVE INCOME FOR THE YEAR - 564,114 564,114 - 564,114
AT 31 DECEMBER 2016 7,317,735 10,223,321 17,541,056 411,047 17,952,103
CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS FUNDS FOR THE YEAR ENDED 31 DECEMBER 2015
Attributable to owners of Revaluation Profit and loss parent Non-controlling reserve account Company interests Total equity £ £ £ £ £ At 1 January 2015 7,317,735 9,033,947 16,351,682 411,047 16,762,729
Profit for the year - 625,260 625,260 - 625,260
TOTAL COMPREHENSIVE INCOME FOR THE YEAR - 625,260 625,260 - 625,260
AT 31 DECEMBER 2015 7,317,735 9,659,207 16,976,942 411,047 17,387,989
The notes on pages 19 to 30 form part of these financial statements.
Page 16 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
COMPANY STATEMENT OF CHANGES IN MEMBERS FUNDS FOR THE YEAR ENDED 31 DECEMBER 2016
Profit and loss account Total equity £ £ At 1 January 2016 9,789,861 9,789,861
COMPREHENSIVE INCOME FOR THE YEAR Profit for the year 564,114 564,114
AT 31 DECEMBER 2016 10,353,975 10,353,975
COMPANY STATEMENT OF CHANGES IN MEMBERS FUNDS FOR THE YEAR ENDED 31 DECEMBER 2015
Profit and loss account Total equity £ £ At 1 January 2015 9,164,602 9,164,602
Profit for the year 625,259 625,259
AT 31 DECEMBER 2015 9,789,861 9,789,861
The notes on pages 19 to 30 form part of these financial statements.
Page 17 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2016
2016 2015 £ £ CASH FLOWS FROM OPERATING ACTIVITIES Profit for the financial year 564,114 625,260 ADJUSTMENTS FOR: Depreciation of tangible assets 951,068 783,873 Interest paid 53,137 69,749 Taxation charge (316) (4,500) Decrease/(increase) in stocks 5,655 (9,035) (Increase)/decrease in debtors (133,271) 25,618 Increase in creditors 415,573 100,806 Net fair value (gains) recognised in P&L (37,776) (55,000) Corporation tax received 5,316 -
NET CASH GENERATED FROM OPERATING ACTIVITIES 1,823,500 1,536,771
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of tangible fixed assets (2,846,747) (1,531,037)
NET CASH FROM INVESTING ACTIVITIES (2,846,747) (1,531,037)
CASH FLOWS FROM FINANCING ACTIVITIES Repayment of loans - (829,907) Interest paid (53,137) (69,749)
NET CASH USED IN FINANCING ACTIVITIES (53,137) (899,656)
(DECREASE) IN CASH AND CASH EQUIVALENTS (1,076,384) (893,922) Cash and cash equivalents at beginning of year 2,567,776 3,461,698
CASH AND CASH EQUIVALENTS AT THE END OF YEAR 1,491,392 2,567,776
CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE: Cash at bank and in hand 1,491,392 2,567,776
1,491,392 2,567,776
Page 18 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
1. GENERAL INFORMATION
Fitzmaurice House Limited is a company limited by guarantee registered in England and Wales.
2. ACCOUNTING POLICIES
2.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom 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 Group management to exercise judgment in applying the Company's accounting policies (see note 2).
The following principal accounting policies have been applied:
2.2 Basis of consolidation
The consolidated financial statements present the results of Club and its own subsidiaries ("the Group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
2.3 Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow and 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.
2.4 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.
Depreciation is provided on the following basis:
Freehold improvements - 20 years straight line Fixtures and fittings - 7-10 years straight line Computer equipment - 3 years 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.
2.5 Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell
Page 19 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
2. ACCOUNTING POLICIES (CONTINUED)
2.6 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.
2.7 Financial instruments
The Group mainly enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties.
The Group has entered into variable to fixed rate interest swaps to manage its exposure to interest rate cash flow risk on its variable rate debt. These derivatives are measured at fair value at each reporting date. Movements in fair value are recognised in comprehensive income.
2.8 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.
2.9 Pensions
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
Page 20 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
3. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY
In the process of applying its accounting policies, the Directors are required to make certain estimates, judgments and assumptions that they believe are reasonable, based on the information available. These judgments, estimates and assumptions affect the value of assets and liabilities at the balance sheet date and the income and expenditure recognised during the year. The key area of estimation uncertainty in the Club’s balance sheet is in respect of depreciation of tangible fixed assets.
Tangible Fixed Assets
The estimated useful economic lives of tangible fixed assets are based on management's judgement and experience. When actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted retrospectively. Due to the significance of tangible fixed assets to the company, variations between actual and estimated useful economic lives could impact operating results both positively and negatively, although historically few changes to estimated useful economic lives have been required.
Page 21 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
4. TURNOVER
An analysis of turnover by class of business is as follows:
2016 2015 £ £ Subscriptions 3,445,482 3,396,756 Bedrooms 2,594,601 2,700,876 Catering 2,843,249 2,524,957 Sports 458,094 415,891
9,341,426 9,038,480
All turnover arose within the United Kingdom.
5. OPERATING PROFIT
The operating profit is stated after charging:
2016 2015 £ £ Depreciation of tangible fixed assets 951,067 783,873 Fees payable to the Group's auditor and its associates for the audit of the Company's annual financial statements 13,600 12,925 Defined contribution pension cost 123,960 117,333
During the year, no director received any emoluments (2015 - £NIL).
Page 22 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
6. EMPLOYEES
Staff costs were as follows:
2016 2015 £ £ Wages and salaries 3,415,052 3,438,509 Social security costs 277,483 260,673 Cost of defined contribution scheme 123,960 117,333
3,816,495 3,816,515
The total of key management personnel compensation for the year was £325,000 (2015: £320,000). This represents the total remuneration and benefits of the Club’s senior management team, representing 5 (2015: 5) members of staff.
The average monthly number of employees during the year was as follows:
2016 2015 No. No. Catering 60 60 Bedrooms 29 27 Sport 12 11 Administration and maintenance 21 19
122 117
7. INTEREST PAYABLE AND SIMILAR CHARGES
2016 2015 £ £
Other interest payable 53,137 69,749
53,137 69,749
8. PARENT COMPANY SURPLUS FOR THE YEAR
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The surplus after tax of the parent company for the year was £564,114 (2015 - £625,260).
Page 23 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
9. CAPITAL IMPROVEMENTS
2016 2015 £ £
2nd Floor Dining Room, Piano Bar and bathroom refurbishments 934,845 142,271 3rd Floor bathroom refurbishment 14,731 6,143 4th Floor staff canteen refurbishment 30,605 - 5th Floor creation of an open plan office and room refurbishment 269,165 237,342 6th Floor plant removal & reallocation 55,568 674,237 Art work and general improvements 34,303 14,278 Aqua Bar and Courtyard furniture 36,932 10,611 Ballroom refurbishment and renovation - 306,677 Creation of a banqueting kitchen 394,582 - Creation of a new ground floor cloakroom 137,357 - Development of new business centre 64,966 - Disabled Access review of all club floors and entrances 35,078 - Electrical distribution board & fire alarm systems 58,176 - Fencing Salle refurbishment 44,061 - General plant and equipment 95,538 65,765 New website creation and IT upgrades 70,000 5,305 Ongoing bedroom refurbishments and upgrades 175,208 - Professional fees 93,780 - Shelburne and Findlay room refurbishments 115,821 - Sports changing room & sports area refurbishment 8,500 15,654 Thirties room and Billiards room renovations 20,898 52,754 Upgrade of plant and air conditioner inverters 156,733 -
2,846,847 1,531,037
Page 24 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
10. TANGIBLE FIXED ASSETS
Group
Freehold Assets in Freehold improvement Fixtures and Computer course of property s fittings equipment construction Total £ £ £ £ £ £
COST OR VALUATION At 1 January 2016 8,000,000 11,678,539 6,102,773 326,215 - 26,107,527 Additions - 1,662,213 152,525 59,900 972,209 2,846,847
At 31 December 2016 8,000,000 13,340,752 6,255,298 386,115 972,209 28,954,374
DEPRECIATION At 1 January 2016 - 4,219,098 4,141,316 292,111 - 8,652,525 Charge for the period on owned assets - 659,317 237,747 54,004 - 951,068
At 31 December 2016 - 4,878,415 4,379,063 346,115 - 9,603,593
NET BOOK VALUE
At 31 December 8,000,000 8,462,337 1,876,235 40,000 972,209 19,350,781 2016
At 31 December 2015 8,000,000 7,459,441 1,961,457 34,104 - 17,455,002
In the opinion of the directors, the current net realisable value of the building is in excess of carrying value and therefore no provision has been made for depreciation as required by FRS 102. This is a departure from Companies Act requirements, but it is the directors' opinion that this departure is necessary to present a true and fair view.
Page 25 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
10. TANGIBLE FIXED ASSETS (CONTINUED)
Company
Assets in Freehold Fixtures and Computer course of improvements fittings equipment construction Total £ £ £ £ £ COST OR VALUATION At 1 January 2016 11,678,539 6,102,773 326,215 - 18,107,527 Additions 1,662,213 152,525 59,900 972,209 2,846,847
At 31 December 2016 13,340,752 6,255,298 386,115 972,209 20,954,374
DEPRECIATION At 1 January 2016 4,219,098 4,141,316 292,111 - 8,652,525 Charge for the period on owned assets 659,317 237,747 54,004 - 951,068
At 31 December 2016 4,878,415 4,379,063 346,115 - 9,603,593
NET BOOK VALUE
At 31 December 2016 8,462,337 1,876,235 40,000 972,209 11,350,781
At 31 December 2015 7,459,441 1,961,457 34,104 - 9,455,002
Page 26 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
11. FIXED ASSET INVESTMENTS
Company
Investments in subsidiary companies £
At 1 January 2016 157,526
At 31 December 2016 157,526
12. STOCKS
Group Group Company Company 2016 2015 2016 2015 £ £ £ £ Finished goods and goods for resale 107,991 113,646 107,991 113,646
107,991 113,646 107,991 113,646
Stock recognised in cost of sales during the year as an expense was £1,059,991 (2015: £1,128,948).
No impairment loss was recognised in cost of sales against stock during the year.
13. DEBTORS
Group Group Company Company 2016 2015 2016 2015 £ £ £ £ Trade debtors 329,642 237,851 329,642 237,851 Amounts owed by group undertakings - - 539,943 293,315 Other debtors 23,301 20,358 23,300 20,358 Prepayments and accrued income 143,573 105,035 143,573 105,035
496,516 363,244 1,036,458 656,559
Page 27 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
14. CASH AND CASH EQUIVALENTS
Group Group Company Company 2016 2015 2016 2015 £ £ £ £ Cash at bank and in hand 1,491,392 2,567,776 1,195,795 2,518,807
1,491,392 2,567,776 1,195,795 2,518,807
15. CREDITORS: Amounts falling due within one year
Group Group Company Company 2016 2015 2016 2015 £ £ £ £ Trade creditors 447,565 660,649 447,565 660,649 Corporation tax 13,962 8,962 13,962 8,962 Other taxation and social security 286,327 364,160 286,327 364,160 Other creditors 361,188 304,244 361,187 304,244 Accruals and deferred income 2,332,127 1,682,479 2,332,127 1,682,479
3,441,169 3,020,494 3,441,168 3,020,494
16. CREDITORS: Amounts falling due after more than one year
Group Group Company Company 2016 2015 2016 2015 £ £ £ £ Financial instruments (after 1 yr) 53,408 91,184 53,408 91,184
53,408 91,184 53,408 91,184
The company has a swap agreement in place until 29 June 2018 whereby they pay a fixed rate of interest and receive interest at a rate linked to LIBOR.
Page 28 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
17. FINANCIAL INSTRUMENTS
Group Group Company Company 2016 2015 2016 2015 £ £ £ £ FINANCIAL ASSETS Financial assets that are debt instruments measured at amortised cost 377,747 258,209 917,690 551,524
377,747 258,209 917,690 551,524
FINANCIAL LIABILITIES Derivative financial instruments measured at fair value through profit or loss (53,408) (91,184) (53,408) (91,184) Financial liabilities measured at amortised cost (1,746,457) (1,286,646) (1,746,457) (1,286,646)
(1,799,865) (1,377,830) (1,799,865) (1,377,830)
Financial assets that are debt instruments measured at amortised cost comprise trade and other debtors.
Derivative financial liabilities measured at fair value through profit or loss comprise the fair value of the interest swap.
Financial liabilities measured at amortised cost comprise trade and other creditors and accruals.
18. RESERVES
Revaluation reserve
Accumulated revaluation surplus on the groups freehold properties.
Profit and loss account
Accumulated profit and loss balances carried forward.
19. COMPANY STATUS
The company is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £0.25 towards the assets of the company in the event of liquidation.
Page 29 FITZMAURICE HOUSE LIMITED (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2016
20. MINORITY INTERESTS Fitzmaurice House Limited owns 94.7% of Lansdowne Club Limited.
At 1 January 2015 and 31 December 2015 411,047
411,047
21. CONTROLLING PARTY
The directors do not consider there to be one ultimate controlling party.
Page 30 Ten Year Review of Club Operations for the year ending 31 December 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Figures in £’000 Subscriptions 3,445 3,397 3,112 3,029 2,674 2,380 2,281 2,126 2,052 1,892 Accommodation 2,595 2,701 2,696 2,628 2,579 2,414 2,399 2,268 2,216 2,099 Catering 2,843 2,525 2,520 2,430 2,193 2,258 1,993 1,820 1,994 1,831 Sports 458 416 404 368 318 273 382 438 249 208 Other - - 24 44 43 42 44 44 52 31 Total Revenue 9,341 9,038 8,756 8,499 7,808 7,367 7,099 6,695 6,564 6,061
Direct costs (5,280) (5,112) (4,580) (4,208) (3,987) (3,691) (3,520) (3,404) (3,301) (3,085)
Overheads (2,493) (2,451) (2,180) (2,262) (1,861) (1,801) (1,808) (1,661) (1,793) (1,744)
Surplus before Interest, Tax Depreciation and Amortisation 1,568 1,475 1,996 2,029 1,960 1,875 1,771 1,630 1,469 1,232
Capital expenditure (2,847) (1,531) (891) (777) (1,143) (3,049) (518) (852) (1,113) (930)
Cash at bank and in hand 1,491 2,568 3,462 2,578 1,796 1,050 442 43 1,073 40
Bank loans outstanding at year end - - (424) (830) (1,239) (1,910) - (819) (2,540) (1,814) Creditors falling due after more than one year (53) (91) (146)
Employees at year end 117 107 95 93 91 90 87 86 76 76
Page 31 Remuneration of The Chairman and Council Members (the Directors of Fitzmaurice House Limited)
No remuneration was paid to any members of the Council.
Members of the Council are invited to use various areas of the Club, on a complimentary basis, so that they are able to keep abreast of how the Club is operating and to assist them to help perform their duties.
This includes a complimentary lunch or dinner for two in the Dining Room once a month, and (subject to availability) a night in a standard double bedroom once a year.
In addition, Council members who are classed as Country or Overseas members, and who are on official Club business, may stay in a standard double bedroom on a complimentary basis on these occasions (subject to availability).
During the financial year under review, Council members (collectively) received 6 complimentary nights of accommodation, which would equate to a value of £780.
Governance Costs
These costs are analysed as follows:
2016 2015 £ £ AGM and Annual Report 10,570 18,570 Council and committee expenses 6,450 7,025 External Audit 13,960 12,925 30,980 38,520
Charity
During the year, the Club donated £2,245 (2015: £7.250) to charity. Charities include Richard House Children’s Hospice, The Galvin Trust and Cancer Research UK.
Honorary Membership
Honorary membership was not awared to any members during the year of 2016.
For a full list of honorary members please visit the website.
Page 32