Company registration number 03698783 (England and Wales)
VALE OF GLAMORGAN HOTEL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
VALE OF GLAMORGAN HOTEL LIMITED
COMPANY INFORMATION
Directors
G L Leeke OBE FCA
E J Leeke
S J Leeke
M A Fowler FCCA
P Martin
P Beddoe
C Leeke
J E Littlejohn
M Leeke
(Appointed 3 April 2023)
Secretary
M Leeke
Company number
03698783
Registered office
Mwyndy Business Park
Mwyndy
Pontyclun
Mid Glamorgan
Wales
CF72 8PN
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
VALE OF GLAMORGAN HOTEL LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 28
VALE OF GLAMORGAN HOTEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Fair review of the business
The company's principal activity is that of the operation of a 4* hotel, leisure and golf resort which includes an events and conference venue at Hensol Castle which opened in March 2015 and has subsequently had an extremely positive effect on both revenues and profitability.
The Vale Resort has performed well across successive years and after the 2020/21 financial year was significantly impacted by enforced closures and restrictions brought about by the Covid-19 pandemic, revenue and profits rebounded strongly in the last 2 years:
The Vale Resort has achieved many years of revenue growth and excellent profitability and the group’s policy of reinvesting significantly in capital expenditure to maintain and improve upon the facilities has yielded significant benefits both in terms of customer satisfaction and the outstanding profit returns generated the consistency of the high profitability level was reflected in the £50.4m professional valuation carried out in the previous financial year by Chartered Surveyors, Cushman’s London.
The Resort continued with the excellent profitability returns in the 2022/23 financial year with £3.187m EBITDA and £2.0m pre-tax profits. The pre-tax profit of £2.0m was £0.5m down on last year’s exceptional profit of £2.5m but still represents an extremely strong performance.
As the hospitality industry continues to recover from the Covid-19 pandemic, turnover was up £2.76m (20%) on the prior year helped by strong growth in rooms, food & beverage and leisure membership revenues as well as the completion of 20 additional rooms at Hensol Castle in the previous financial year which were available for use.
Gross margins fell from 54.3% to 50.8% on the back of considerable payroll and product (especially food) inflation. Despite the fall in the gross margin percentage, gross profit was still up £0.9m (12%) on the previous financial year as a result of the turnover growth. Administrative expenses were up £1.3m (26%) on last year following the significant cost inflation on payroll and property costs. However, £0.4m of the £1.3m increase relates to the loss of the full business rates relief that was received in the prior year so, on a like basis, the £2.0m pre-tax profit was only down £0.1m on the outstanding comparatives of the previous financial year with the operating profits achieved continuing to out-perform our competitor set.
Post year-end trading
Despite the ongoing cost inflation, post year-end trading has continued to be outstanding and with forward booking levels very positive, and leisure & golf memberships still buoyant, we are projecting that 2023/24 will result in another year of strong profitability.
Principal risks and uncertainties
The company operates in a market which is susceptible to economic recession; it manages this risk by providing value added services to its customers, especially in the area of accommodation and leisure.
The directors have reviewed the financial risk management objectives and policies of the company; they do not believe there to be significant risks in this area. The company does not enter into any hedging instruments, as there are believed to be no material exposures. The company does not enter into any financial instruments for speculative purposes.
Appropriate terms are negotiated with suppliers and customers. Management review these terms and the relationships with suppliers and customers and manages any exposure on normal trade terms. The company prepares regular forecasts of cash flow and liquidity and any requirement for additional funding is managed as part of the overall J H Leeke and Sons Limited group financing arrangements.
VALE OF GLAMORGAN HOTEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Future prospects and going concern
The company is a wholly-owned subsidiary within J H Leeke and Sons Limited and is party to the group banking facilities. The group will continue to operate in the business areas in which it is engaged and aims to exploit new activities as they arise by reinvesting profits back into the group’s activities.
The group continues to comply with all its banking covenants with significant headroom including interest cover, senior leverage, gearing and loan to value covenants. The forward projections show that this compliance will continue for the foreseeable future. We will continue to benefit from the ten year £10m 0.8825% interest rate swap which has provided the group significant protection against interest rate rises.
The group has net assets of £85.7m which includes substantial freehold property interests and continues to perform strongly post year-end despite the challenging economic environment. The group financial projections for the 12 months following the date of signing of the financial statements show continued strong profitability and significant headroom on its debt facilities due to the highly cash generative nature of the groups’ activities.
Key performance indicators
The directors closely monitor the business performance through the use of both financial and non-financial KPIs.
Financial KPIs include room occupancy percentages, average room rates, membership numbers, food and beverage revenues per available room, new leisure membership targets, leisure membership retention targets, and spa and golf course utilisations. The directors compare the performance on these KPIs against both the internal budgets and targets set and against competitor benchmarking data. The directors are pleased to report that the Vale Resort has consistently outperformed its competitor set in respect of profitability per available room over an extended period.
Non-financial KPIs include guest and member feedback surveys, mystery guest programmes, staff retention levels and sales conversion targets.
VALE OF GLAMORGAN HOTEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Section 172 statement
Section 172 of the Companies Act 2006 requires that directors of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
a) The likely consequences of any decision in the long term
b) The interests of the company's employees
c) The need to foster the company's business relationships with suppliers, customers and others
d) The impact of the company's operations on the community and the environment
e) The desirability of the company maintaining a reputation for high standards of business conduct
f) The need to act fairly as between members of the company.
The directors acknowledge their responsibilities and are satisfied they have met their duties regarding these matters in the decisions they have made during the year ended 31 March 2023.
Corporate commitments
As a family business we appreciate the wider impact that we have on our teams, communities and the environment and have defined the following commitments:
We will continue to focus our attention on all aspects of well-being, respecting our duty to protect and nurture
We will embrace technology in our products and processes to drive efficiencies and improvements
We are proud to be part of our local community and will continue to support and be a positive resource
We accept our environmental responsibility and will continue to look to mitigate our impact where possible
Stakeholder responsibilities
The group recognises the contribution of all its employees and is committed to recruiting, developing and retaining a strong and diverse workforce. The group has implemented a structured framework for employees to progress their careers with the Leekes Retail and Leisure Group and has reinforced the importance of fair and transparent performance management.
The directors acknowledge the importance of the company's customers to its success and are committed to providing the highest levels of service to them across all our operations.
We recognise the important part that our suppliers play in our business. We work in partnership with them and enjoy positive and often long standing relationships with our key suppliers.
We understand our corporate social accountability, particularly with relation to our interaction with our neighbours and the environment.
Health & safety
We acknowledge our responsibilities under the Health and Safety at Work Act 1974, The Management of Health and Safety at Work Regulations 1992 and 1999 and associated protective legislation, both as an employer and as a business. To achieve these objectives the company has appointed designated team members to be responsible for ensuring that we keep workplace health, safety and welfare procedures under constant review, to implement continuous improvement; to liaise with the Health and Safety Executive wherever necessary and to keep the company and its Board of Directors abreast of new legislation, in order to ensure ongoing compliance with the law.
M A Fowler FCCA
Group Finance Director
22 September 2023
VALE OF GLAMORGAN HOTEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of the operation of a hotel, leisure and golf resort.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G L Leeke OBE FCA
E J Leeke
S J Leeke
M A Fowler FCCA
P Martin
P Beddoe
C Leeke
J E Littlejohn
M Leeke
(Appointed 3 April 2023)
Results and dividends
The results for the year are set out on page 10. A fair review of the business is included in the Strategic report on page 1.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.
Energy and carbon report
Details around the company's energy and carbon usage are included in the parent company consolidated accounts.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually 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 auditor is aware of that information.
VALE OF GLAMORGAN HOTEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
Employment policies
It is the policy of the company that there should be no discrimination in considering applications for employment including those from disabled persons. All employees, including the disabled, are given equal opportunities in terms of career development and promotion. Appropriate training is arranged for disabled persons, including retraining for alternative work of employees who became disabled while in employment with the company, to promote their career development within the organisation.
The company remains committed to its policy of keeping employees fully informed about all matters which concern them; formal communications are used to achieve this objective. Employee involvement takes different forms, ranging from formal committee meetings to less formal discussion groups.
Schemes have been implemented to ensure that employees are properly rewarded for performance and loyalty.
On behalf of the board
M A Fowler FCCA
Group Finance Director
22 September 2023
VALE OF GLAMORGAN HOTEL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
The directors are responsible for preparing the annual 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
VALE OF GLAMORGAN HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VALE OF GLAMORGAN HOTEL LIMITED
- 7 -
Opinion
We have audited the financial statements of Vale Of Glamorgan Hotel Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
VALE OF GLAMORGAN HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VALE OF GLAMORGAN HOTEL LIMITED
- 8 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the relevant sector;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and health & safety regulations;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
VALE OF GLAMORGAN HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VALE OF GLAMORGAN HOTEL LIMITED
- 9 -
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
22 September 2023
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
VALE OF GLAMORGAN HOTEL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
16,740,784
13,980,560
Cost of sales
(8,237,633)
(6,388,000)
Gross profit
8,503,151
7,592,560
Administrative expenses
(6,208,436)
(4,933,439)
Other operating income
101,396
Operating profit
5
2,294,715
2,760,517
Interest receivable and similar income
9
154
Interest payable and similar expenses
10
(284,568)
(210,647)
Profit before taxation
2,010,301
2,549,870
Tax on profit
11
(823,161)
(582,533)
Profit for the financial year
1,187,140
1,967,337
The profit and loss account has been prepared on the basis that all operations are continuing operations.
VALE OF GLAMORGAN HOTEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
£
£
Profit for the year
1,187,140
1,967,337
Other comprehensive income
Revaluation of tangible fixed assets
419,768
Total comprehensive income for the year
1,187,140
2,387,105
VALE OF GLAMORGAN HOTEL LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
6,273
4,915
Tangible assets
13
51,106,112
50,757,159
Investments
14
519,672
51,112,385
51,281,746
Current assets
Stocks
15
471,699
413,058
Debtors falling due after more than one year
16
20,435,958
17,094,871
Debtors falling due within one year
16
1,030,010
970,604
Cash at bank and in hand
266,274
971,148
22,203,941
19,449,681
Creditors: amounts falling due within one year
17
(7,786,706)
(7,533,512)
Net current assets
14,417,235
11,916,169
Total assets less current liabilities
65,529,620
63,197,915
Creditors: amounts falling due after more than one year
18
(11,821,030)
(11,499,626)
Provisions for liabilities
Deferred tax liability
20
2,177,458
1,354,297
(2,177,458)
(1,354,297)
Net assets
51,531,132
50,343,992
Capital and reserves
Called up share capital
22
22,500,000
22,500,000
Revaluation reserve
3,260,053
3,260,053
Profit and loss reserves
25,771,079
24,583,939
Total equity
51,531,132
50,343,992
The financial statements were approved by the board of directors and authorised for issue on 22 September 2023 and are signed on its behalf by:
M A Fowler FCCA
Group Finance Director
Company Registration No. 03698783
VALE OF GLAMORGAN HOTEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
22,500,000
2,840,285
22,616,602
47,956,887
Year ended 31 March 2022:
Profit for the year
-
-
1,967,337
1,967,337
Other comprehensive income:
Revaluation of tangible fixed assets
-
419,768
-
419,768
Total comprehensive income for the year
419,768
1,967,337
2,387,105
Balance at 31 March 2022
22,500,000
3,260,053
24,583,939
50,343,992
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
1,187,140
1,187,140
Balance at 31 March 2023
22,500,000
3,260,053
25,771,079
51,531,132
The revaluation reserve represents the cumulative effect of revaluations of freehold and leasehold land and buildings.
The profit and loss reserve represents cumulative profits or losses, net of dividends paid and other adjustments.
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information
Vale Of Glamorgan Hotel Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mwyndy Business Park, Mwyndy, Pontyclun, Mid Glamorgan, Wales, CF72 8PN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold and leasehold properties. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ – Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of J.H. Leeke and Sons Limited. These consolidated financial statements are available from its registered office, Mwyndy Business Park, Mwyndy, Pontyclun, Mid Glamorgan, Wales, CF72 8PN.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Vale Of Glamorgan Hotel Limited is a wholly owned subsidiary of J.H. Leeke and Sons Limited and the results of Vale Of Glamorgan Hotel Limited are included in the consolidated financial statements of J.H. Leeke and Sons Limited which are available from its registered office, Mwyndy Business Park, Mwyndy, Pontyclun, Mid Glamorgan, Wales, CF72 8PN.
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company is a wholly-owned subsidiary within J H Leeke and Sons Limited and is party to the group banking facilities. The group will continue to operate in the business areas in which it is engaged and aims to exploit new activities as they arise by reinvesting profits back into the group’s activities.
The group continues to comply with all its banking covenants with significant headroom including interest cover, senior leverage, gearing and loan to value covenants. The forward projections show that this compliance will continue for the foreseeable future. We will continue to benefit from the ten year £10m 0.8825% interest rate swap which has provided the group significant protection against interest rate rises.
Despite the ongoing cost inflation, post year-end trading has continued to be outstanding and with forward booking levels very positive, and leisure & golf memberships still buoyant, we are projecting that 2023/24 will result in another year of strong profitability.
The group has net assets of £85.7m which includes substantial freehold property interests and continues to perform strongly post year-end despite the challenging economic environment. The group financial projections for the 12 months following the date of signing of the financial statements show continued strong profitability and significant headroom on its debt facilities due to the highly cash generative nature of the groups’ activities.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Hotel revenue is recognised in the period in which the service is provided.
Golf resort membership revenue is recognised evenly over the period to which it relates. Golf retail revenue is recognised at the time of sale. Other golf resort revenue is recognised in the period to which it relates.
Leisure club membership revenue is recognised evenly over the period to which it relates. Leisure club retail revenue is recognised at the time of sale. Other leisure club revenue is recognised in the period to which it relates.
Operating lease income is recognised on a straight-line basis over the period to which it relates.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademarks
10 years straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings
not depreciated
Plant and machinery
15% reducing balance or 10% to 20% straight line
Fixtures, fittings and motor vehicles
8% to 15% reducing balance or 10% to 33% straight line
No depreciation is provided on freehold or leasehold land and buildings as, in the opinion of the directors, the residual values of the properties are not lower than their value at the date of acquisition. An annual impairment review is carried out by the directors in respect of these buildings.
Revaluations of freehold and leasehold land and buildings are undertaken with sufficient regularity to ensure that the carrying value does not materially differ from that which would be determined using fair value at the end of the reporting period. The surplus or deficit on book value is transferred to the revaluation reserve, except that a deficit which is in excess of any previously recognised surplus over depreciated cost relating to the property, or the reversal of such deficit, is charged (or credited) to the profit and loss account. A deficit which represents a clear consumption of economic benefits is charged to the profit and loss account regardless of any such previous surplus.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of tangible fixed assets and frequency of valuation
The key area of estimation uncertainty relates to the carrying value of the company's tangible fixed assets. As at 31 March 2023 the company had tangible fixed assets of £51,106,112 (2022: £50,757,159). Land and buildings were revalued by an independent valuer during the year ended 31 March 2022; the directors have re-considered the value in the intervening years using the same methodology. Overall the carrying value of the company's tangible fixed assets exceed depreciated historical cost by £3,260,053 (2022: £3,260,053).
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Hotel
11,556,115
9,535,011
Leisure
2,715,549
2,168,876
Golf
1,771,323
1,756,328
Rental income
449,212
406,776
Visitor centre
248,585
113,569
16,740,784
13,980,560
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 20 -
2023
2022
£
£
Other significant revenue
Interest income
154
-
Government grants received
-
4,000
Furlough claim grant
-
97,396
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
16,740,784
13,980,560
4
Other operating income
2023
2022
£
£
Furlough claim grant
-
97,396
Government grants
-
4,000
-
101,396
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(4,000)
Furlough claim grant
-
(97,396)
Depreciation of owned tangible fixed assets
863,515
822,442
Depreciation of tangible fixed assets held under finance leases
21,902
-
Loss/(profit) on disposal of tangible fixed assets
5,707
(2,653)
Operating lease charges
227,425
224,048
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,000
7,000
For other services
Other taxation services
5,100
4,915
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
7
Employees
The average monthly number of persons (including directors and part time staff) employed by the company during the year was:
2023
2022
Number
Number
Administrative
124
125
Directors
2
2
Sales
23
22
Spa
17
23
Events and catering
188
118
Ground staff
26
25
Total
380
315
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
6,342,956
5,043,826
Social security costs
485,048
357,736
Pension costs
109,145
92,691
6,937,149
5,494,253
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
290,745
307,209
Company pension contributions to defined contribution schemes
47,798
24,378
338,543
331,587
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
180,273
192,862
Company pension contributions to defined contribution schemes
41,694
16,698
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Directors' remuneration
(Continued)
- 22 -
In addition to the above, the majority of the directors are remunerated by a fellow subsidiary, Leekes Limited, for their services to the group as a whole, remuneration totalling £872,647 (2022: £877,739) and company pension contributions to defined contribution schemes totalling £122,571 (2022: £166,668). It is not practicable to allocate their remuneration between services to this company and to the group as a whole.
Included within the directors remunerated by Leekes Limited is the highest paid director of the group in respect of whom remuneration was £198,146 (2022: £169,980) and company pension contributions to defined contribution schemes were £16,712 (2022: £58,589). It is not practicable to allocate this remuneration between services to this company and to the group as a whole.
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
154
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank loans, arrangement fees and other charges
45,183
28,952
Interest payable to group undertakings
239,385
181,695
284,568
210,647
11
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
211,931
582,533
Changes in tax rates
471,726
Adjustment in respect of prior periods
139,504
Total deferred tax
823,161
582,533
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Taxation
(Continued)
- 23 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
2,010,301
2,549,870
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
381,957
484,475
Tax effect of expenses that are not deductible in determining taxable profit
650
1,837
Adjustments in respect of prior years
139,503
Effect of change in corporation tax rate
510,513
Group relief
(250,198)
104,271
Permanent capital allowances in excess of depreciation
(11,363)
(92,753)
Depreciation on assets not qualifying for tax allowances
53
62
Other temporary timing differences
3,286
Other timing differences
48,760
84,641
Taxation charge for the year
823,161
582,533
12
Intangible fixed assets
Trademarks
£
Cost
At 1 April 2022
4,915
Additions
1,358
At 31 March 2023
6,273
Amortisation and impairment
At 1 April 2022 and 31 March 2023
Carrying amount
At 31 March 2023
6,273
At 31 March 2022
4,915
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
13
Tangible fixed assets
Land and buildings
Plant and machinery
Fixtures, fittings and motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 April 2022
42,304,448
5,327,981
6,602,823
54,235,252
Additions
397,499
651,735
223,193
1,272,427
Disposals
(2,863)
(216,626)
(4,360)
(223,849)
At 31 March 2023
42,699,084
5,763,090
6,821,656
55,283,830
Depreciation and impairment
At 1 April 2022
1,127,350
2,350,743
3,478,093
Depreciation charged in the year
350,362
535,055
885,417
Eliminated in respect of disposals
(181,432)
(4,360)
(185,792)
At 31 March 2023
1,296,280
2,881,438
4,177,718
Carrying amount
At 31 March 2023
42,699,084
4,466,810
3,940,218
51,106,112
At 31 March 2022
42,304,448
4,200,631
4,252,080
50,757,159
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
328,526
In the year ended 31 March 2022 a valuation was undertaken by an external, independent valuer, being Cushman & Wakefield. The valuation was prepared in accordance with the RICS Valuation - Global Standards, This lead to an upwards revaluation of all fixed assets of £419,768. The directors undertook further reviews at 31 March 2023 and concluded that there was no significant movement in carrying value.
If tangible fixed assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2023
2022
£
£
Cost
64,497,807
63,449,229
Accumulated depreciation
(16,651,748)
(15,952,123)
Carrying value
47,846,059
47,497,106
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
519,672
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 April 2022
519,672
Transfers
(519,672)
At 31 March 2023
-
Carrying amount
At 31 March 2023
-
At 31 March 2022
519,672
The company's investment in Bottlers & Distillers (Wales) Limited was transferred to the parent company J. H. Leeke & Sons Limited during the year.
15
Stocks
2023
2022
£
£
Raw materials and consumables
471,699
413,058
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
428,973
531,852
Corporation tax recoverable
50,843
Prepayments and accrued income
601,037
387,909
1,030,010
970,604
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Debtors
(Continued)
- 26 -
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
20,435,958
17,094,871
Total debtors
21,465,968
18,065,475
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
19
116,751
Trade creditors
267,277
427,998
Amounts owed to group undertakings
3,879,010
4,065,901
Taxation and social security
694,254
375,291
Other creditors
175,616
170,230
Accruals and deferred income
2,653,798
2,494,092
7,786,706
7,533,512
18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
19
175,127
Amounts owed to group undertakings
11,645,903
11,499,626
11,821,030
11,499,626
19
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
116,752
In two to five years
175,126
291,878
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases held have now come to an end.
Obligations under finance lease and hire purchase are secured on the assets to which they relate.
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
20
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
2,089,251
1,305,315
Revaluations
93,644
50,418
Retirement benefit obligations
(3,923)
(1,436)
Bonus accrual
(1,514)
-
2,177,458
1,354,297
2023
Movements in the year:
£
Liability at 1 April 2022
1,354,297
Charge to profit or loss
823,161
Liability at 31 March 2023
2,177,458
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
109,145
92,691
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
22,500,000
22,500,000
22,500,000
22,500,000
Only one class of shares, therefore all shares rank pari passu.
23
Financial commitments, guarantees and contingent liabilities
A contingent liability exists in respect of inter-group cross-guarantees entered into in respect of group bank borrowings with Barclays Bank PLC and Lloyds Bank PLC. Group bank borrowings at the balance sheet date amount to £16,316,667 (2022: £16,891,667). Group bank borrowings are secured over the assets of the group including the assets of the company.
VALE OF GLAMORGAN HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
24
Operating lease commitments
Lessee
Operating lease payments represent rentals payable by the company for certain of its properties. The leases are negotiated over terms of 70 years. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
260,000
220,000
Between two and five years
1,040,000
880,000
In over five years
16,813,333
1,145,833
18,113,333
2,245,833
25
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
134,319
382,348
26
Ultimate controlling party
The ultimate parent company is J H Leeke and Sons Limited, a company registered in England and Wales.
J H Leeke and Sons Limited is the parent of the smallest and largest group of which the company is a member and for which group financial statements are drawn up. Copies of the financial statements of J H Leeke and Sons Limited are available from Companies House, Crown Way, Maindy, Cardiff.
The directors consider the parent company's controlling party to be G L Leeke.
27
Related party transactions
The company has taken advantage of exemption, under the terms of FRS 102, Section 33.1A, from disclosing related party transactions with wholly owned subsidiaries within the group.
G L Leeke, S N Leeke, S J Leeke, E J Leeke, C Leeke and J E Littlejohn are trustees of J H Leeke & Sons Executive Pension Scheme. During the year, the company paid rent of £220,000 (2022: £220,000) to the pension scheme in respect of land and buildings.
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