Caseware UK (AP4) 2022.0.179 2022.0.179 2023-01-312023-01-31true303truetruetruetruetruefalse2022-02-01362false 04725421 2022-02-01 2023-01-31 04725421 2021-02-01 2022-01-31 04725421 2023-01-31 04725421 2022-01-31 04725421 2021-02-01 04725421 c:RestatedAmount 2022-01-31 04725421 c:RestatedAmount 2021-02-01 04725421 1 2022-02-01 2023-01-31 04725421 1 2021-02-01 2022-01-31 04725421 2 2022-02-01 2023-01-31 04725421 2 2021-02-01 2022-01-31 04725421 5 2022-02-01 2023-01-31 04725421 5 2021-02-01 2022-01-31 04725421 6 2022-02-01 2023-01-31 04725421 6 2021-02-01 2022-01-31 04725421 e:CompanySecretary1 2022-02-01 2023-01-31 04725421 e:Director1 2022-02-01 2023-01-31 04725421 e:Director2 2022-02-01 2023-01-31 04725421 e:Director3 2022-02-01 2023-01-31 04725421 e:RegisteredOffice 2022-02-01 2023-01-31 04725421 c:Buildings 2022-02-01 2023-01-31 04725421 c:Buildings 2023-01-31 04725421 c:Buildings 2022-01-31 04725421 c:Buildings c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 04725421 c:Buildings c:LongLeaseholdAssets 2022-02-01 2023-01-31 04725421 c:Buildings c:LongLeaseholdAssets 2023-01-31 04725421 c:Buildings c:LongLeaseholdAssets 2022-01-31 04725421 c:Buildings c:ShortLeaseholdAssets 2022-02-01 2023-01-31 04725421 c:FurnitureFittings 2022-02-01 2023-01-31 04725421 c:FurnitureFittings 2023-01-31 04725421 c:FurnitureFittings 2022-01-31 04725421 c:FurnitureFittings c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 04725421 c:OwnedOrFreeholdAssets 2022-02-01 2023-01-31 04725421 c:CurrentFinancialInstruments 2023-01-31 04725421 c:CurrentFinancialInstruments 2022-01-31 04725421 c:Non-currentFinancialInstruments 2023-01-31 04725421 c:Non-currentFinancialInstruments 2022-01-31 04725421 c:CurrentFinancialInstruments c:WithinOneYear 2023-01-31 04725421 c:CurrentFinancialInstruments c:WithinOneYear 2022-01-31 04725421 c:Non-currentFinancialInstruments c:AfterOneYear 2023-01-31 04725421 c:Non-currentFinancialInstruments c:AfterOneYear 2022-01-31 04725421 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2023-01-31 04725421 c:Non-currentFinancialInstruments c:BetweenOneTwoYears 2022-01-31 04725421 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2023-01-31 04725421 c:Non-currentFinancialInstruments c:BetweenTwoFiveYears 2022-01-31 04725421 c:ReportableOperatingSegment1 2022-02-01 2023-01-31 04725421 c:ReportableOperatingSegment1 2021-02-01 2022-01-31 04725421 c:ReportableOperatingSegment2 2022-02-01 2023-01-31 04725421 c:ReportableOperatingSegment2 2021-02-01 2022-01-31 04725421 c:ReportableOperatingSegment3 2022-02-01 2023-01-31 04725421 c:ReportableOperatingSegment3 2021-02-01 2022-01-31 04725421 c:UKTax 2022-02-01 2023-01-31 04725421 c:UKTax 2021-02-01 2022-01-31 04725421 c:RevaluationReserve 2022-02-01 2023-01-31 04725421 c:RevaluationReserve 2023-01-31 04725421 c:RevaluationReserve 2 2022-02-01 2023-01-31 04725421 c:RevaluationReserve 5 2022-02-01 2023-01-31 04725421 c:RevaluationReserve 6 2022-02-01 2023-01-31 04725421 c:RevaluationReserve 2021-02-01 2022-01-31 04725421 c:RevaluationReserve 2022-01-31 04725421 c:RevaluationReserve c:RestatedAmount 2022-01-31 04725421 c:RevaluationReserve 2021-02-01 04725421 c:RevaluationReserve c:RestatedAmount 2021-02-01 04725421 c:RevaluationReserve 2 2021-02-01 2022-01-31 04725421 c:RevaluationReserve 5 2021-02-01 2022-01-31 04725421 c:RevaluationReserve 6 2021-02-01 2022-01-31 04725421 c:RevaluationReserve 8 2021-02-01 2022-01-31 04725421 c:RetainedEarningsAccumulatedLosses 2022-02-01 2023-01-31 04725421 c:RetainedEarningsAccumulatedLosses 2023-01-31 04725421 c:RetainedEarningsAccumulatedLosses 2 2022-02-01 2023-01-31 04725421 c:RetainedEarningsAccumulatedLosses 2021-02-01 2022-01-31 04725421 c:RetainedEarningsAccumulatedLosses 2022-01-31 04725421 c:RetainedEarningsAccumulatedLosses c:RestatedAmount 2022-01-31 04725421 c:RetainedEarningsAccumulatedLosses 2021-02-01 04725421 c:RetainedEarningsAccumulatedLosses c:RestatedAmount 2021-02-01 04725421 c:RetainedEarningsAccumulatedLosses 1 2021-02-01 2022-01-31 04725421 c:RetainedEarningsAccumulatedLosses 2 2021-02-01 2022-01-31 04725421 c:AcceleratedTaxDepreciationDeferredTax 2023-01-31 04725421 c:AcceleratedTaxDepreciationDeferredTax 2022-01-31 04725421 c:TaxLossesCarry-forwardsDeferredTax 2023-01-31 04725421 c:TaxLossesCarry-forwardsDeferredTax 2022-01-31 04725421 c:RetirementBenefitObligationsDeferredTax 2023-01-31 04725421 c:RetirementBenefitObligationsDeferredTax 2022-01-31 04725421 e:OrdinaryShareClass1 2022-02-01 2023-01-31 04725421 e:OrdinaryShareClass1 2023-01-31 04725421 e:OrdinaryShareClass1 2022-01-31 04725421 e:FRS102 2022-02-01 2023-01-31 04725421 e:Audited 2022-02-01 2023-01-31 04725421 e:FullAccounts 2022-02-01 2023-01-31 04725421 e:PrivateLimitedCompanyLtd 2022-02-01 2023-01-31 04725421 c:WithinOneYear 2023-01-31 04725421 c:WithinOneYear 2022-01-31 04725421 c:BetweenOneFiveYears 2023-01-31 04725421 c:BetweenOneFiveYears 2022-01-31 04725421 c:MoreThanFiveYears 2023-01-31 04725421 c:MoreThanFiveYears 2022-01-31 04725421 5 2022-02-01 2023-01-31 04725421 7 2022-02-01 2023-01-31 04725421 c:RevaluationReserve c:PriorPeriodErrorIncreaseDecrease 2022-02-01 2023-01-31 04725421 c:RevaluationReserve c:PriorPeriodErrorIncreaseDecrease 2021-02-01 2022-01-31 04725421 c:RetainedEarningsAccumulatedLosses c:PriorPeriodErrorIncreaseDecrease 2022-02-01 2023-01-31 04725421 c:RetainedEarningsAccumulatedLosses c:PriorPeriodErrorIncreaseDecrease 2021-02-01 2022-01-31 04725421 c:PriorPeriodErrorIncreaseDecrease 2022-02-01 2023-01-31 04725421 c:PriorPeriodErrorIncreaseDecrease 2021-02-01 2022-01-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 04725421









FIRMDALE PROPERTY INVESTMENTS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
COMPANY INFORMATION


Directors
T J R Kemp 
J K Kemp 
C A Markham 




Company secretary
M T Soden



Registered number
04725421



Registered office
18 Thurloe Place

London

SW7 2SP




Independent auditors
MHA
Statutory Auditor

6th Floor

2 London Wall Place

London

EC2Y 5AU





 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 7
Independent auditors' report
8 - 11
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14 - 15
Notes to the financial statements
16 - 30

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

Introduction
 
The directors present their report and the audited financial statements of the company for the year ended 31 January 2023.

Business review
 
The company has a freehold interest in the Charlotte Street Hotel and long leasehold interests in the Covent Garden Hotel and the Haymarket Hotel. All three hotels are managed by Firmdale Hotels Plc, a fellow group company.
Subsequent to year end, the Covent Garden hotel was transferred to a fellow group company as part of a restructure to acquire the freehold interest of the hotel. The acquisition completed on 28 February 2023. 

Principal risks and uncertainties
 
The principal financial risks faced by the company, and the company's objectives and policies in relation to those risks, are as follows:
Cash flow risk
The finance department closely manages the company's cash flow. Detailed cash flow forecasts are regularly prepared with the objective of alerting the directors to potential future risks. It is the company's policy to ensure that forecast funding requirements can be met with available committed facilities.
Interest rate risk
The company's interest rate policy has the twin objectives of minimising net interest expense whilst providing protection from material adverse movement in interest rates. The company has fixed its interest charge obligations for ten years from 27 November 2014.
Currency risk
The company faces minimal currency risks as it operates wholly in the UK.

Financial key performance indicators
 
The company's three hotels managed by Firmdale Hotels Plc had aggregated revenues of £38.5m (2022 -£13.1m) during the financial year, a 2.9 fold increase.
The three hotels operated at a combined average occupancy of 74.3% (2022 - 46.5%) and an average room rate of £572 (2022 - £480). This represented a rooms yield (RevPAR) increase of 1.9 fold over prior year.
Aggregated food and beverage revenues achieved across the three hotels totalled £12.6m (2022 - £5.6m), a 2.25 fold increase year on year. 
Conversion of aggregated revenues to gross operating profit for the three hotels was 38.4% (2022 - 19.7%).

Page 1

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Going concern

The directors view the cashflows and liabilities of Firmdale Holdings Ltd and its subsidiaries (“the Group”) as a whole in making assessments of the group’s ability to meet its liabilities as they fall due. Therefore, as part of their assessment of going concern, the directors of the company have considered the funding and liquidity position of the Group to determine the appropriateness of preparing the financial statements on a going concern basis. 
The outbreak of the global Covid-19 pandemic in early 2020 had a very significant impact on the operations of the group in common with the majority of businesses worldwide, and the hospitality sector in particular. Following the elimination of all material UK restrictions with effect from 19th July 2021, and the gradual restoration of international travel thereafter, trading demand recovered quickly and since March 2022 both Revenues and Earnings have exceeded those achieved in pre-Covid 2019, a significant milestone in recovery. The continuing growth led to record profitability for the Group in the financial year to January 2023. Furthermore, rising interest rates have not had a significant impact on the Group given that 67% of group debt is fixed and a further 31% has the benefit of an interest rate cap should LIBOR exceed 3.5%. 
The trading results for the first six months of the new financial year are slightly ahead of budget and the outlook for the remainder of the year and beyond remains positive. The lenders remained very supportive during the Covid period and the relationships remain strong with comfortable delivery of financial covenant hurdles now firmly re-established. 
The Board will continue to monitor developments closely and adjust their forecasting assumptions as required, but have a high degree of confidence that the company will be able to meet its liabilities as they fall due and meet its covenant obligations for a period of at least twelve months. The Directors have therefore concluded that the company can continue to adopt the going concern basis in preparing the annual report and accounts.
Despite generating a loss before tax in the year to 31 January 2023 of £1,103,000 and net current liabilities at the reporting date of £44,099,000, the directors consider the company to remain a going concern. The loss before tax is also stated after accounting adjustments such as a depreciation charge of £3,700,000. Trading activity post year end has continued to improve and these three hotels are strategically important for the wider Firmdale Group. The net current liabilities position is largely driven by amounts due to fellow companies, who have confirmed this amount will not be recalled to the detriment of other creditors or the operations of the company. The directors therefore consider the going concern basis to remain appropriate. 

Directors' statement of compliance with duty to promote the success of the Company
 
The directors consider the successful running of the company in terms of achieving its long-term growth strategy which centres around building a sustainable, profitable business which has brand reputation at its heart. The success of the Group centres around positive and effective dealings with all the stakeholders of the group and the directors were mindful of the long-term consequences of key commercial decisions made during the year, and determined that these were in the interests of the company's employees, suppliers, customers and other stakeholders, as they were all aligned to the group’s growth strategy.
The company's and group’s success depends on the company maintaining a reputation for high standards of business conduct with customers and other stakeholders, whether in relation to specific community issues or with regards to environmental issues such as minimising the production of waste.
The principal decisions made by the directors, confirm that throughout the year they have acted in the way that they consider, in good faith, to be most likely to promote the success of the company for the benefit of its members as a whole.

Page 2

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023


This report was approved by the board and signed on its behalf.





................................................
T J R Kemp
Director

Date: 10 October 2023
Page 3

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The directors present their report and the financial statements for the year ended 31 January 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Principal activity

The principal activity of the company is that of a luxury hotel property owner and operator for three hotels. The hotels are managed by Firmdale Hotels Plc, a fellow group company. 

Results and dividends

The loss for the year, after taxation, amounted to £1,662 thousand (2022 - loss £5,055 thousand).

The directors do not recommend the payment of a dividend (2022 - £Nil).

Directors

The directors who served during the year were:

T J R Kemp 
J K Kemp 
C A Markham 

Future developments

The company is seeking further development opportunities in London but at present there are no specific projects secured.

Page 4

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Financial instruments

The company has established a risk and financial management framework whose primary objectives are to protect the company from events that hinder the achievement of the company's performance objectives.
The objectives aim to limit undue counterparty exposure, ensure sufficient working capital exists and monitor the management of risk at a business unit level.
Further detail in respect of the company's exposure to risks such as cash flow and liquidity risk has been provided in the strategic report on page 1.

Engagement with employees

The company recognises that its employees are fundamental to the success of their service driven business. It is therefore committed to maximising workforce potential by supporting the learning and development needs of each individual member of staff. 
Good communication with employees is also considered essential. As a matter of principle the company actively promotes from within wherever possible and provides competitive rates of pay and benefits. 

Engagement with suppliers, customers and others

Firmdale consciously looks for suppliers who echo the ethos of the Group, be it in environmental awareness or social consideration. The Group's purchasing, philosophy is to meet the demands and expectations of a global clientele by sourcing from quality, local and diverse suppliers. This is implemented by forming long term partnerships with suppliers, working closely in partnership with them.
Firmdale's supplier relationships are based on lawful, efficient and fair practices. We expect our suppliers to demonstrate they treat workers fairly and provide a safe and healthy work environment, way beyond the basic statutory regulations concerning forced labour or human trafficking.
Customer relations are paramount in Firmdale's belief system. Firmdale actively encourage customer comments and feedback and every form of correspondence, both positive and negative, is answered by a senior manager. A rigorous Mystery Guest programme is run across the Group with stringent guidelines on what service standards to test and what guests should expect. This has proven successful in highlighting areas that require improvement or indeed that are working well. Every employee of Firmdale is encouraged to see service and experiences through the eyes of the customer. As a result of our long term pursuit of service excellence, more than 50% of the company's business continues to be generated from returning guests.

Disabled employees

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotion to disabled employees wherever appropriate.

Qualifying third party indemnity provisions

Third party qualifying directors' and officers’ insurance has been maintained throughout the financial year and to the date of this report which extends to all subsidiaries within the wider group under Firmdale Holdings Limited.

Page 5

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company takes very seriously its responsibilities to improve its energy efficiency and reduce its carbon footprint. The wider group headed by Firmdale Holdings Limited meets the requirements of CEMARSTM certification having measured its greenhouse gas emissions in compliance with the requirements of ISO 14064-1:2006 and is committed to managing and reducing its emissions in respect of the operational activities of its organisation, which has been closely monitored since 2008. We have already made significant reductions in the level of energy consumed.
GHG emissions and energy use for period 01 February 2022 to 31 January 2023:



Annual Quantity of gross emissions by unit turnover/revenue (tCO2e/£M) in the year
39.10tC02e

Annual Quantity of gross Scope 1, Scope 2 & Scope 3 emissions tCO2e in the year
1,507tC02e

Annual Quantity of energy consumed
7,643,427KWH


The following inventory has been prepared in accordance with the requirements of the measure-step of the Toitu carbon marks, which is based on the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) and ISO 14064-1:2006 Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals. Where relevant, the inventory is aligned with industry or sector best practice for emissions measurement and reporting.

Current reporting year 1 February 2022 to 31 January 2023

Energy consumption used to calculate emissions (kWh)

7,643,427

- Gas (kWh)

4,227,458

- Electricity (kWh)

3,415,969

- Transport fuels (kWh)

N/A

Emissions from combustion of gas tCO2e (Scope 1)

772

Emissions from combustion of fuel for transport purposes tCO2e (Scope 1)

N/A

Emissions from business travel in rental cars or employee-owned vehicles where company is responsible for purchasing of the fuel tCO2e (Scope 3)

N/A

Emissions from purchased electricity tCO2e (Scope 2, location-based)

660

Total gross emissions tCO2e based on the above

1,432


The above information was prepared in accordance with ISO14064 Part 1 2018 and Carbon Reduce and verified to ISO14064 Part 1 2018 and Carbon Reduce.

Matters covered in the Strategic report

As permitted by paragraph 1A of schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008, certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report on pages 1 - 2.

Page 6

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

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'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's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

Following a rebranding exercise on 15 May 2023 the trading name of the company's independent auditor changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

This report was approved by the board and signed on its behalf.
 





................................................
T J R Kemp
Director

Date: 10 October 2023
Page 7

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRMDALE PROPERTY INVESTMENTS LIMITED
 

Opinion


We have audited the financial statements of Firmdale Property Investments Limited (the 'Company') for the year ended 31 January 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 January 2023 and of its loss 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.


Basis for opinion


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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 8

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRMDALE PROPERTY INVESTMENTS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion on other matters 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 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.


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 directors' 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 set out on page 4, 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.


Page 9

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRMDALE PROPERTY INVESTMENTS LIMITED (CONTINUED)


Auditors' 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 Auditors' 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:
enquiry of management, those charged with governance and Company legal advisors around actual and potential litigation and claims;

performing audit work over the risk and management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

reviewing minutes of meetings of those charged with governance; and

reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Page 10

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FIRMDALE PROPERTY INVESTMENTS LIMITED (CONTINUED)


Use of our 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 2006Our 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.





Rajeev Shaunak FCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditor
  
London, United Kingdom

19 October 2023
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
Page 11

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

As restated
2023
2022
Note
£000
£000

  

Turnover
 4 
38,545
13,089

Cost of sales
  
(23,056)
(12,298)

Gross profit
  
15,489
791

Administrative expenses
  
(13,411)
(6,687)

Other operating income
 5 
-
2,260

Operating profit/(loss)
 6 
2,078
(3,636)

Interest payable and similar expenses
 9 
(3,181)
(3,187)

Loss before tax
  
(1,103)
(6,823)

Tax on loss
 10 
(559)
1,768

Loss for the financial year
  
(1,662)
(5,055)

Other comprehensive income for the year
  

Unrealised surplus on revaluation of leasehold property
  
2,513
16,165

Unrealised surplus on revaluation of freehold property
  
1,750
20,436

Deferred tax charged on revalued freehold property
  
-
(8,443)

Deferred tax charged on revalued leasehold property
  
(182)
(6,758)

Other comprehensive income for the year
  
4,081
21,400

Total comprehensive income for the year
  
2,419
16,345

The notes on pages 16 to 30 form part of these financial statements.
Page 12

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
REGISTERED NUMBER: 04725421

STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

As restated
2023
2022
Note
£000
£000

Fixed assets
  

Tangible assets
 11 
182,250
181,500

  
182,250
181,500

Current assets
  

Stocks
 12 
217
186

Debtors: amounts falling due within one year
 13 
22,687
14,466

Cash at bank and in hand
 14 
948
2,547

  
23,852
17,199

Creditors: amounts falling due within one year
 15 
(67,951)
(63,604)

Net current liabilities
  
 
 
(44,099)
 
 
(46,405)

Total assets less current liabilities
  
138,151
135,095

Creditors: amounts falling due after more than one year
 16 
(74,157)
(74,104)

Provisions for liabilities
  

Deferred tax
 18 
(30,475)
(29,891)

  
 
 
(30,475)
 
 
(29,891)

Net assets
  
33,519
31,100


Capital and reserves
  

Revaluation reserve
 20 
43,117
40,160

Profit and loss account
 20 
(9,598)
(9,060)

  
33,519
31,100


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



................................................
T J R Kemp
Director

Date: 10 October 2023

The notes on pages 16 to 30 form part of these financial statements.

Page 13

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2023


Revaluation reserve
Profit and loss account
Total equity

£000
£000
£000

At 1 February 2022 (as previously stated)
37,794
(6,694)
31,100

Prior year adjustment - correction of error (see Note 21)
2,366
(2,366)
-

At 1 February 2022 (as restated)
40,160
(9,060)
31,100


Comprehensive income for the year

Loss for the year

-
(1,662)
(1,662)

Surplus on revaluation of freehold property
1,750
-
1,750

Surplus on revaluation of leasehold property
2,513
-
2,513

Deferred tax charged on revalued leasehold property
(182)
-
(182)
Total comprehensive income for the year
4,081
(1,662)
2,419

Transfer to/from profit and loss account
(1,124)
1,124
-


At 31 January 2023
43,117
(9,598)
33,519


The notes on pages 16 to 30 form part of these financial statements.
Page 14

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2022


Revaluation reserve
Profit and loss account
Total equity

£000
£000
£000

At 1 February 2021 (as previously stated)
16,009
(1,927)
14,082

Prior year adjustment - correction of error (see Note 21)
3,304
(2,631)
673

At 1 February 2021 (as restated)
19,313
(4,558)
14,755


Comprehensive income for the year

Loss for the year

-
(5,055)
(5,055)

Surplus on revaluation of freehold property
20,436
-
20,436

Surplus on revaluation of leasehold property
16,165
-
16,165

Deferred tax charged on revalued freehold property
(8,443)
-
(8,443)

Deferred tax charged on revalued leasehold property
(6,758)
-
(6,758)
Total comprehensive income for the year
21,400
(5,055)
16,345

Transfer to/from profit and loss account
(553)
553
-


At 31 January 2022
40,160
(9,060)
31,100


The notes on pages 16 to 30 form part of these financial statements.
Page 15

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


General information

Firmdale Property Investments Limited is a private company, limited by shares, incorporated and registered in England and Wales under the Companies Act. 
The principal activity of the company is that of a luxury hotel property owner and operator for three hotels. The hotels are managed by Firmdale Hotels Plc, a fellow group company. 
The Company's functional and presentational currency is pound sterling (GBP), rounded to the nearest £1,000.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK 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 management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Firmdale Holdings Limited  as at 31 January 2023  and these financial statements may be obtained from the Registrar of Companies.

Page 16

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.3

Going concern

The directors view the cashflows and liabilities of Firmdale Holdings Ltd and its subsidiaries (“the Group”) as a whole in making assessments of the group’s ability to meet its liabilities as they fall due. Therefore, as part of their assessment of going concern, the directors of the company have considered the funding and liquidity position of the Group to determine the appropriateness of preparing the financial statements on a going concern basis. 
The outbreak of the global Covid-19 pandemic in early 2020 had a very significant impact on the operations of the group in common with the majority of businesses worldwide, and the hospitality sector in particular. Following the elimination of all material UK restrictions with effect from 19th July 2021, and the gradual restoration of international travel thereafter, trading demand recovered quickly and since March 2022 both Revenues and Earnings have exceeded those achieved in pre-Covid 2019, a significant milestone in recovery. The continuing growth led to record profitability for the Group in the financial year to January 2023. Furthermore, rising interest rates have not had a significant impact on the Group given that 67% of group debt is fixed and a further 31% has the benefit of an interest rate cap should LIBOR exceed 3.5%. 
The trading results for the first six months of the new financial year are slightly ahead of budget and the outlook for the remainder of the year and beyond remains positive. The lenders remained very supportive during the Covid period and the relationships remain strong with comfortable delivery of financial covenant hurdles now firmly re-established. 
The Board will continue to monitor developments closely and adjust their forecasting assumptions as required, but have a high degree of confidence that the company will be able to meet its liabilities as they fall due and meet its covenant obligations for a period of at least twelve months. The Directors have therefore concluded that the company can continue to adopt the going concern basis in preparing the annual report and accounts.
Despite generating a loss before tax in the year to 31 January 2023 of £1,103,000 and net current liabilities at the reporting date of £44,099,000, the directors consider the company to remain a going concern. The loss before tax is also stated after accounting adjustments such as a depreciation charge of £3,700,000. Trading activity post year end has continued to improve and these three hotels are strategically important for the wider Firmdale Group. The net current liabilities position is largely driven by amounts due to fellow companies, who have confirmed this amount will not be recalled to the detriment of other creditors or the operations of the company. The directors therefore consider the going concern basis to remain appropriate. 

 
2.4

Revenue

Revenue represents amounts receivable for accommodation, food and beverage sales and ancillary hotel services provided in the normal course of business.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the 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.
Deposits which have been received at the reporting date for which services have not yet been provided are included in accruals and deferred income within creditors.

Page 17

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.5

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.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Land is not depreciated. Depreciation on other assets 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:

Long-term leasehold property
-
Over the lease term
Freehold property
-
2% straight line
Fixtures and fittings
-
20% 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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.7

Stocks

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. Work in progress and finished goods include labour and attributable overheads.

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.

Page 18

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.8

Debtors

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.

 
2.9

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.

 
2.10

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.

 
2.11

Government subsidies and grant income

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.

 
2.12

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.13

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss 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 Company in independently administered funds.

 
2.14

Holiday pay adjustment

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

Page 19

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)

 
2.15

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.16

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.17

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

 
2.19

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. 
 
Page 20

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The following judgements (including the key areas of estimation uncertainty) have had the most significant effect on amounts recognised in the financial statements:
Revaluation of tangible fixed assets
The long term leasehold and freehold property is held under the revaluation model based on the directors' conclusions, having consulted and reviewed the previous valuations completed by independent valuation specialists. These valuers hold recognised and relevant professional qualifications. The valuations are based on discounted cash flow models which include judgements surrounding future performance and market factors. 

Page 21

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£000
£000

Rooms
25,458
7,253

Food and beverage
12,562
5,589

Other
525
247

38,545
13,089


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£000
£000

Government grants receivable
-
2,260



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£000
£000

Depreciation of tangible fixed assets
3,700
2,862

Other operating lease rentals
2,637
1,284

During the year, no director received any emoluments (2022 - £Nil).


7.


Auditors' remuneration

2023
2022
£000
£000


Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements
18
17


The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company.

Page 22

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

8.


Employees

Staff costs were as follows:


2023
2022
£000
£000

Wages and salaries
11,822
7,413

Social security costs
957
571

Cost of defined contribution scheme
170
119

12,949
8,103


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
3
3



Hotel staff
359
300

362
303


9.


Interest payable and similar expenses

2023
2022
£000
£000


Bank interest payable
3,181
3,187

Page 23

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

10.


Taxation


2023
2022
£000
£000

Corporation tax


Current tax on profits for the year
157
-

Deferred tax


Origination and reversal of timing differences
402
(7,178)

Effect of tax rate change on opening balance
-
5,410

Total deferred tax
402
(1,768)


Taxation on profit/(loss) on ordinary activities
559
(1,768)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Loss on ordinary activities before tax
(1,103)
(6,823)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(210)
(1,296)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
699
619

Capital allowances for year in excess of depreciation
-
499

Super-deduction expenditure adjustment
(17)
-

Adjustments to tax charge in respect of prior periods
(13)
-

Deferred tax recognised at a higher rate
100
(1,590)

Total tax charge for the year
559
(1,768)


Factors that may affect future tax charges

The standard rate of corporation tax in the UK has increased on a sliding scale based on profits from 19% to 25%, effective from 1 April 2023.

Page 24

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

11.


Tangible fixed assets





Long-term leasehold property
Freehold property
Fixtures and fittings
Total

£000
£000
£000
£000



Cost or valuation


At 1 February 2022
92,345
88,901
11,057
192,303


Additions
-
-
186
186


Revaluations
676
53
-
729



At 31 January 2023

93,021
88,954
11,243
193,218



Depreciation


At 1 February 2022
-
-
10,803
10,803


Charge for the year on owned assets
1,838
1,697
165
3,700


On revalued assets
(1,838)
(1,697)
-
(3,535)



At 31 January 2023

-
-
10,968
10,968



Net book value



At 31 January 2023
93,021
88,954
275
182,250



At 31 January 2022
92,345
88,901
254
181,500

Standard Life Investment Limited have security over freehold and leasehold property, and fixed and floating charges over other assets held by the company. These charges form security for a loan facility provided to the company.

The freehold and long term leasehold property was valued by the directors, with support of Cushman & Wakefield, Chartered Surveyors, an independent valuer with a recognised and relevant professional qualification and with recent experience in the location and category of the property being valued. A formal valuation was carried out at the previous reporting date, 31 January 2022 and since then an assessment has been carried out by the directors with guidance from Cushman & Wakefield as at 31 January 2023, on the basis of fair value in accordance with the Appraisal and Valuation Manual of The Royal Institution of Chartered Surveyors.

Page 25

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

           11.Tangible fixed assets (continued)

If the freehold property had not been included at valuation they would have been included under the historical cost convention as follows:

As restated
2023
2022
£000
£000



Cost
43,388
43,388

Accumulated depreciation
(9,914)
(8,984)

Net book value
33,474
34,404

If the long term leasehold properties had not been included at valuation they would have been included under the historical cost convention as follows:

As restated
2023
2022
£000
£000



Cost
83,230
83,230

Accumulated depreciation
(16,173)
(14,691)

Net book value
67,057
68,539


12.


Stocks

2023
2022
£000
£000

Food and beverage stock
217
186


The replacement cost of stock was not materially different to the amount stated above.

Page 26

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

13.


Debtors

2023
2022
£000
£000

Trade debtors
75
207

Amounts owed by group undertakings
21,979
13,541

Other debtors
633
718

22,687
14,466


All amounts shown under debtors fall due for payment within one year. Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

14.


Cash and cash equivalents

2023
2022
£000
£000

Cash at bank and in hand
948
2,547



15.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Amounts owed to group undertakings
66,168
62,540

Corporation tax
157
-

Other taxation and social security
70
-

Other creditors
518
103

Accruals and deferred income
1,038
961

67,951
63,604


Amounts owed to group undertakings are unsecured, interest-free and are repayable on demand.


16.


Creditors: Amounts falling due after more than one year

2023
2022
£000
£000

Bank loans (see Note 17)
74,210
74,211

Deferred finance charges
(53)
(107)

74,157
74,104


Page 27

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£000
£000

Amounts falling due 1-2 years

Bank loans
74,210
-

Deferred finance charges
(53)
-

Amounts falling due 2-5 years

Bank loans
-
74,211

Deferred finance charges
-
(107)

74,157
74,104


Secured loan
The bank loan presented above is a fixed rate interest loan facility at 4.223% per annum. Interest only is paid until the termination of the loan on 26 November 2024, when the capital amount is to be repaid in full.
The bank loan due within one to two years is secured by legal charges over the freehold and leasehold properties of the company and a fellow subsidiary. In addition, they are secured by fixed and floating charges over the book debts and other assets of the company and a fellow subsidiary.


18.


Deferred taxation




2023
2022


£000

£000






At beginning of year
(29,891)
(17,131)


(Charged)/credited to profit or loss
(402)
1,768


(Charged)/credited to other comprehensive income
(182)
(14,528)



At end of year
(30,475)
(29,891)

Page 28

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
 
18.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
2022
£000
£000


Accelerated capital allowances
650
858

Tax losses carried forward
5,575
5,769

Temporary difference on revaluation of freehold and leasehold property
(36,700)
(36,518)

(30,475)
(29,891)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary share of £1.00
1
1

The shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not cover any rights of redemption.



20.


Reserves

Revaluation reserve

This reserve records the amount above the historic cost of tangible fixed assets. The amount of depreciation provided on book value which represents a surplus on valuation is transferred as a reserves movement to the profit and loss account.

Profit and loss account

Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.


21.


Prior year adjustment

A prior year adjustment has been processed in relation to the revaluation of freehold and long term leasehold property, alongside associated movements to correct the position between the Revaluation reserve and Profit and loss account.
For the year ended 31 January 2021, which is the earliest period correction presented, a reclassification of £3,304,000 was processed between the Revaluation reserve and Profit and loss account in the Statement of changes in equity. Of this, £673,000 represents deferred tax movements arising on revaluations not previously accounted for through other comprehensive income, with the resulting £2,631,000 to the Profit and loss account. 

Page 29

 
FIRMDALE PROPERTY INVESTMENTS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

22.


Pension commitments

The company operates a defined contribution scheme for employees. The assets of the scheme are held separately from those of the company in independently administered funds. The pension cost charge for the year represents contributions payable by the company to the funds and amounted to £170,000 (2022   - £119,000).


23.


Commitments under operating leases

At 31 January 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£000
£000


Not later than 1 year
2,197
2,188

Later than 1 year and not later than 5 years
8,789
8,752

Later than 5 years
70,072
72,055

81,058
82,995


24.


Related party transactions

The company has taken advantage of the exemption available under paragraph 33.1A of the Financial Reporting Standard 102 not to disclose transactions with other wholly owned members of the Group.


25.


Controlling party

The immediate parent and controlling company is Firmdale West End Limited, a company registered in England and Wales.
The ultimate parent company is Firmdale Holdings Limited, head of the ultimate group and a company registered in England and Wales. The consolidated accounts of this group, which is the smallest and largest to include the company, are available from the Registrar of Companies.
In the opinion of the directors, the Trustees of Kemp Family Foundation are the ultimate controlling party of the Group and therefore of this entity.
 
Page 30