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The Morwellham and Tamar Valley Trust is due to file accounts in July 2008 for the year ending September 2007. Accounts currently available are for the year ending September 2006. Updated accounts will be added as soon as they are available.
Financial Summary
In the year, the company reported a consolidated loss of £65,647 (in 2005 the losses were £55,726).
It should be noted that over a period of about 10 years, the trust has managed to run up debts of close to £1 million. In the year ending September 2006, the total debt (creditors) reported in the published accounts was £967,292 of which £891,442 relates to bank loans and overdrafts.
Income from admissions fell to £376,463 from 405,358 in 2005 (a reduction of 7%).
The accounts report that - ‘There were no extraordinary costs reported in the accounts, however overheads continued to rise mainly on staff and maintenance costs’. Actually a quick look at the accounts will show that this is not the case. The combined Staff and maintenance costs only increased by £5,354 on last years costs and in fact total running costs were down by £25,346 on the previous year.
The accounts report fixed assets (Net Book Value) of a little over £1.4 million of which about £1.1 million relates to Freehold Land and Buildings. Interestingly, the accounts include about £100,000 in depreciation for Freehold Land and Buildings at a time when property values continued to rise.
This inevitably begs the question of weather the assets have been undervalued despite the fact that ‘The Trustees have reviewed the Net Book Value of the land and buildings as at 30th September 2006 and consider that this value is not materially different to an open market value at that date’.
It should also be noted that a full analysis of the accounts has revealed some discrepancies between the detail and the summary.
Post Balance Sheet Events
Accounting practice allows for certain material changes to be included in a set of accounts where, though not falling within the accounting period, have a significant impact on the financial position of the company.
This set of accounts report that;
‘In April 2007, the Companies bankers accepted £525,000 in full and final settlement of the monies due to them which, at the 30th September 2006 totaled £891,442. The Trust borrowed the money required to pay the bank and to fund further working capital from Devon County Council and West Devon Borough Council’.
It should be noted that this loan to pay off existing debts was widely publicised by Devon County Council, West Devon Borough Council, Tamar Valley AONB and Morwellham Quay as an investment in the future of Morwellham Quay - not one report contained the words ‘loan’, or ‘debt’.
If you would like to receive a full set of accounts in PDF format please send a request via the Contact page.
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