Registered number: 11662604
THEOBALDS PARK OP CO LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2021
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THEOBALDS PARK OP CO LIMITED
REGISTERED NUMBER: 11662604
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 October 2023.
The notes on page 2 form part of these financial statements.
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THEOBALDS PARK OP CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 4th Floor, 22 Baker Street, London, W1U 3BW. The principal place of trading is Lieutenant Ellis Way, Cheshunt, EN7 5HW.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The Directors have assessed the going concern position and in doing so have prepared a cash flow forecast to December 2024 as well as considering future financing arrangements and business activity. This shows that the Company will be reliant on the ongoing support from its shareholder to meet its obligations. The shareholders have confirmed it is their current intention to provide such support, but this ongoing support is not guaranteed, and will be assessed in the context of the trading results during 2023 and 2024.
The Company is guarantor on a senior debt facility held by Theobalds Park Property Limited, which is currently in default, and this facility matures in Q4 2023. The Company is engaged in constructive discussions with its lender about restructuring the debt. The Company is also assessing other options to ensure the senior debt can be repaid in full upon maturity. These include a sale of the business, and/or a refinance with a new lender. The debt with the new lender would be for 12 months and the current forecasts show the company would be cash flow positive for these 12 months if the debt was taken out. Whilst no legally binding agreements have yet been signed, the directors remain positive on the progress they are making
As a result of the above, there is a material uncertainty that casts significant doubt over the Company’s ability to continue as a going concern, and the accounts have been prepared on this basis.
Turnover comprises income from the operation of a hotel, which excludes value added tax and trade discounts, and represents the invoiced value of goods and services supplied. It is recognised at the point of sale at which the accommodation and related services are provided.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
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THEOBALDS PARK OP CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
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 charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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. No depreciation is charged in the first period in which the assets are brought into use. Depreciation begins on the first day of the following financial period.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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THEOBALDS PARK OP CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.Accounting policies (continued)
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Cash and cash equivalents
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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.
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.
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The average monthly number of employees, including directors, during the year was 142 (2020 - 159).
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Charge for the year on owned assets
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The bank debt held in Theobalds Park Property Limited (see note 9 for more details) is secured on the hotel. These assets have been used to fit out the hotel, therefore they form part of this security.
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THEOBALDS PARK OP CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Prepayments and accrued income
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are interest free and repayable on demand.
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Page 1
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THEOBALDS PARK OP CO LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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Financial commitments and guarantees
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At 31 December 2021 the Company had future minimum lease payments due under non-cancellable operating leases for land and buildings for each of the following periods:
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Later than 1 year and not later than 5 years
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The company is a guarantor on the bank loans held by its fellow subsidiary, Theobalds Park Property Limited. The balance as at 31st December 2021 was £16,036,256 (2020: £16,206,356).
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Post balance sheet events
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The Company is a guarantor on a senior debt facility held by Theobalds Park Property Limited, a company under common control. The covenants on the facility have been breached since March 2022 and the loan his currently in default. See note 2.2 for the impact this has had on the going concern assessment.
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Ultimate parent undertaking and controlling party
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The immediate parent undertaking is Theobalds Park Holdings Ltd a company registered in the Isle of Man, First Names House, Victoria Road, Douglas, IM2 4DF. The ultimate controlling party is Theobalds Park Group Holdings Ltd, a company registered at the same address. The largest and smallest group for which consolidated accounts are prepared is Theobalds Park Property LLP, a company registered in England & Wales.
The auditors' report on the financial statements for the year ended 31 December 2021 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to note 2.2 in the financial statements, which indicates that the company requires funding from it's shareholders, the bank debt on which this company is a guarantor is in default and this debt matures in Q4 2023. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter..
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The audit report was signed on 11 October 2023 by Isabelle Shepherd (Senior Statutory Auditor) on behalf of Haysmacintyre LLP.
Page 2
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