REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
QUEENSGATE HOTEL LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
QUEENSGATE HOTEL LIMITED |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Statement of Cash Flows | 12 |
Notes to the Statement of Cash Flows | 13 |
Notes to the Financial Statements | 14 |
QUEENSGATE HOTEL LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
505 Pinner Road |
Harrow |
Middlesex |
HA2 6EH |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
The company owns hotel operating as the Holiday Inn, Stevenage. It's a 4 star modern hotel in Stevenage and boasts 140 high specification air conditioned guest rooms, contemporary restaurant, mini gymnasium and excellent conference and meeting facilities. |
REVIEW OF BUSINESS |
Whilst there have been signs of improved trading, there are still challenges in the business mainly related to inflation in terms of wages, utilities and general cost of sale. Corporate business is building slowly and leisure demand remains strong. Further works for the Stevenage regeneration programme continue to support additional business in the Stevenage area. Our historical Capital expenditure spend has ensured that the business in well positioned as normal business resumes. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main concerns are staff retention as the cost-of-living crisis is forcing people to look for jobs where they may not have done previously. There continues to be a general labour shortage in the economy but we continue to focus on staff retention schemes and creating a great environment to work in to mitigate this risk. Another concern is the looming increase in interest rates and the impact on the economy. |
DEVELOPMENT AND PERFORMANCE OF THE COMPANY'S BUSINESS |
The result for the company shows a profit before tax of £584,340 (2022: £264,484) and sales of £4,189,261 (2022: £2,772,603) for the year. The directors are satisfied with the overall result as the Company's performance has improved significantly. The asset has been well maintained and the team has worked hard to meet and exceed the IHG 'Way of Clean' brand standard to ensure guests feel safe staying at the hotel. The key focus now is to manage costs whilst exploring every opportunity. There is pent-up demand and the team look forward to strong trading from both corporate and leisure customers |
POSITION OF THE COMPANY'S BUSINESS AT YEAR END |
The company has net assets of £2,897,903 (2022: £2,329,611) and net current liability of £1,587,514 (2022:£2,083,338). |
The Board will continue to support capital expenditure and focus on driving the IHG brand metrics. The Board believes the key trading is in a good position to meet its financial obligations and objectives. |
KEY FINANCIAL PERFORMANCE INDICATORS (KPI’S) |
The hotel's EBITDA in current year increased by 57% from £691k in 2022 to £1085k in 2023. During the year, average occupancy rate was 22% more than the previous year. Average room rate achieved for the year was £7.76 more than the previous year. |
Directors are satisfied with the KPI's achieved during the year. |
ON BEHALF OF THE BOARD: |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of operating and managing of a hotel. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
QUEENSGATE HOTEL LIMITED |
Opinion |
We have audited the financial statements of Queensgate Hotel Limited (the 'company') for the year ended 31 March 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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. |
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 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
QUEENSGATE HOTEL LIMITED |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page three, 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
QUEENSGATE HOTEL LIMITED |
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 a Report of the Auditors 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. |
A fuller description of our responsibilities is provided on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. |
Our approach to assessing the risk of material misstatement due to irregularities including Fraud: |
- we identified the laws and regulations applicable to the company through discussions with management and also used our commercial and sector experience of the industry; |
- we ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- identified laws and regulations were communicated within our team and remained alert to any indications of non-compliance throughout the audit; |
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries with Directors and management; |
- considered the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and |
- we also made enquiries with Directors and management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud. |
Responding to the risk of material misstatement due to Fraud |
To respond to the identified risk of material misstatement due to fraud we assessed events and conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. We implemented following risk assessment procedures: |
- tested journal entries to identify significant or unusual transactions and investigated the rationale behind those transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- performed analytical procedures to identify any unusual or unexpected relationship. |
Responding to the risk of material misstatement due to non-compliance with Laws and Regulations |
We implemented following risk assessment procedures: |
- agreeing financial statement disclosures to underlying supporting documentation; and |
- enquiring of management as to actual and potential litigation and claims. |
Ability of the audit to detect fraud or breaches of the Laws and Regulations |
Owing to the inherent limitations in an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have planned and performed the audit in accordance with the auditing standards. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment, forgery, collusion, misrepresentation, or intentional omission. |
Our audit procedures are planned to detect material misstatements. We are not responsible for preventing fraud or non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
QUEENSGATE HOTEL LIMITED |
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 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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
& Statutory Auditors |
505 Pinner Road |
Harrow |
Middlesex |
HA2 6EH |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ |
REVENUE |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
724,639 | 312,598 |
Other operating income |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
753,082 | 367,722 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME |
Income tax relating to other comprehensive income |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 7 |
CURRENT ASSETS |
Inventories | 8 |
Debtors | 9 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Revaluation reserve | 16 |
Retained earnings | 16 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 March 2023 | ( |
) |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2023 |
31/3/23 | 31/3/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repaid during the year | ( |
) | ( |
) |
Inter company loans | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
172,270 |
Cash and cash equivalents at end of year | 2 | 185,322 | 356,944 |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31/3/23 | 31/3/22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 168,742 | 103,238 |
Finance income | (2,634 | ) | (31 | ) |
1,080,603 | 689,692 |
Increase in inventories | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 185,322 | 356,944 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 356,944 | 172,270 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/4/22 | Cash flow | At 31/3/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 356,944 | (171,622 | ) | 185,322 |
356,944 | ( |
) | 185,322 |
Debt |
Debts falling due within 1 year | (333,328 | ) | (5 | ) | (333,333 | ) |
Debts falling due after 1 year | (3,329,640 | ) | 329,635 | (3,000,005 | ) |
(3,662,968 | ) | 329,630 | (3,333,338 | ) |
Total | (3,306,024 | ) | 158,008 | (3,148,016 | ) |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Queensgate Hotel Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover arose entirely in the United Kingdom from hotel operations. |
Turnover represents net invoiced sales of food, beverages and rental of rooms, excluding value added tax. |
Revenue Recognition |
Revenue is recognised at the point services are provided to the guest. Room revenue for night spent between two days is recorded on the first day. Deposits received are held as a liability untill the delivery of service. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Stocks |
Stocks are stated at lower of cost and net realisable value after deducting direct selling costs. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Leased assets |
Rental charges applicable to operating leases where substantially all of the benefits and risk of ownership remain with the lessor are charged against profit on a straight line basis over the lease term. |
Revaluation |
Surplus arising from the valuation of freehold property are taken directly to the revaluation reserve. Deficits are eliminated against any revaluation reserve in respect of that income generating unit with any excess, to the extent that it represents an impairment, being charged to profit and loss account. |
Holiday pay accrual |
During the year, the company has made NIL provision (2022: £4,462) in the accounts in respect of Holiday pay. |
3. | EMPLOYEES AND DIRECTORS |
31/3/23 | 31/3/22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31/3/23 | 31/3/22 |
Management Staff | 4 | 4 |
Employees | 52 | 49 |
AGENCY STAFF: |
House keeping function is outsourced and on average 10 (2022:7) staff members performed house keeping function at the hotel during the year. The count of such employees is in addition to the average number of employees. |
31/3/23 | 31/3/22 |
£ | £ |
Directors' remuneration |
During the year, there were cross charges in respect of directors' salaries amounting to £164,864 (2022: £164,447) charged to Queensgate Hotel Edinburgh Limited. |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31/3/23 | 31/3/22 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
Non audit remuneration |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/3/23 | 31/3/22 |
£ | £ |
Bank interest |
Other interest |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/3/23 | 31/3/22 |
£ | £ |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31/3/23 | 31/3/22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Utilisation of tax losses | ( |
) | ( |
) |
Deferred Tax | 16,048 | 67,608 |
Group relief of losses | (48,014 | ) | - |
Total tax charge | 16,048 | 67,608 |
Tax effects relating to effects of other comprehensive income |
31/3/22 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
7. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Freehold | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2022 |
Additions |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Included in cost or valuation of freehold property is freehold land of £4,277,846 (2022: £4,277,846) which is not depreciated. |
Freehold property was valued by the Directors (MRICS qualified) of Colliers International Property Consultants Limited, in March 2021. No significant change in property value has been noted by directors of the Company for March 2023 after careful analysis of property market. |
The freehold property comprises: |
2023 | 2022 |
£ | £ |
Land | 4,277,846 | 4,277,846 |
Building | 3,340,540 | 3,427,218 |
7,618,386 | 7,705,064 |
Cost or valuation at 31 March 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Computer |
property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
Valuation in 2015 | 2,207,679 | - | - | - | 2,207,679 |
Valuation in 2016 | 500,000 | - | - | - | 500,000 |
Valuation in 2018 | 1,631,386 | - | - | - | 1,631,386 |
Valuation in 2019 | 1,053,904 | - | - | - | 1,053,904 |
Valuation in 2020 | (350,000 | ) | - | - | - | (350,000 | ) |
Valuation in 2021 | 92,556 | - | - | - | 92,556 |
Cost | 3,476,213 | 6,991,660 | 1,087,586 | 100,908 | 11,656,367 |
8,611,738 | 6,991,660 | 1,087,586 | 100,908 | 16,791,892 |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
8. | INVENTORIES |
31/3/23 | 31/3/22 |
£ | £ |
Food and beverage |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/3/23 | 31/3/22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31/3/23 | 31/3/22 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Pensions Creditor | 3,879 | 2,965 |
VAT | 118,229 | 35,211 |
Other creditors |
Accrued expenses |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31/3/23 | 31/3/22 |
£ | £ |
Bank loans (see note 12) |
12. | LOANS |
An analysis of the maturity of loans is given below: |
31/3/23 | 31/3/22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loan |
Amounts falling due between one and two years: |
Bank loan - 1-2 years |
Amounts falling due between two and five years: |
Bank loan - 2-5 years |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
12. | LOANS - continued |
Bank loan balance is comprised of a refinance loan facility obtained in December 2018 and a CBILs loan amounting to 163k. Refinance facility is repayable by December 2023 & CBIL loan is repayable by November 2025. Both the loans are on interest rates currently prevailing in the commercial market for similar Industry. |
13. | SECURED DEBTS |
The following secured debts are included within creditors: |
31/3/23 | 31/3/22 |
£ | £ |
Bank loans |
Bank loans are secured against freehold property owned by the company in addition to the security provided by the UK Government under the Enterprise Finane Guarantee Scheme for an amount of £200K. There is additional fixed and floating charge on the freehold property against loan obtained by Group companies from Clydesdale Bank. |
14. | PROVISIONS FOR LIABILITIES |
31/3/23 | 31/3/22 |
£ | £ |
Deferred tax | 536,013 | 519,965 |
Deferred tax |
£ |
Balance at 1 April 2022 |
Provided during year |
Balance at 31 March 2023 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/3/23 | 31/3/22 |
value: | £ | £ |
Ordinary | 1 | 100,000 | 100,000 |
16. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | ( |
) | 2,229,611 |
Profit for the year |
At 31 March 2023 | ( |
) | 2,797,903 |
QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
17. | RELATED PARTY DISCLOSURES |
Key management personnel are considered to be the directors, details of their remuneration are detailed under note 3. |
The following balances were owed (to)/from the related parties: |
2023 | 2022 |
£ | £ |
Pr Sachdev Trust (Ultimate parent company) | (100,000 | ) | (100,000 | ) |
Queensgate Investment Limited (Parent of immediate parent company) | (1,666,633 | ) | (2,666,633 | ) |
Queensgate Hotel Edinburgh LP (Associate company) | - | 519,547 |
Queensgate Hotel Edinburgh Limited (Associate company) | 376,608 | 376,608 |
(1,390,025 | ) | (1,870,477 | ) |
18. | ULTIMATE PARENT COMPANY AND CONTROLLING PARTY |
The company is a 100% subsidiary of Queensgate Mezz Hold Co Limited, a company registered in Jersey. Trustees of PR Sachdev 1989 Discretionary Settlement Trust are the ultimate controlling party. |
19. | GOING CONCERN |
Directors have prepared the accounts on going concern basis notwithstanding the net current liability of £1.5m due to the following reason. Queensgate Investment Limited (group company) has given assurance of not demanding repayment of intercompany loans amounting to £1.6m for at least next 12 months from the date of signing of financial statements. This will help the company to continue its operations for the foreseeable future. |