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REGISTERED NUMBER: 06764257 (England and Wales)















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: R G Sachdev
Mrs R J Kantaria
J R Kantaria



REGISTERED OFFICE: 505 Pinner Road
Harrow
Middlesex
HA2 6EH



REGISTERED NUMBER: 06764257 (England and Wales)



SENIOR STATUTORY AUDITOR: Bharat Vanza BSc (Hons) FCA FCCA



AUDITORS: STGCA LLP t/a Sterling
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:





J R Kantaria - Director


27 October 2023

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.

R G Sachdev
Mrs R J Kantaria
J R Kantaria

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:





J R Kantaria - Director


27 October 2023

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.




Bharat Vanza BSc (Hons) FCA FCCA (Senior Statutory Auditor)
for and on behalf of STGCA LLP t/a Sterling
Chartered Accountants
& Statutory Auditors
505 Pinner Road
Harrow
Middlesex
HA2 6EH

27 October 2023

QUEENSGATE HOTEL LIMITED (REGISTERED NUMBER: 06764257)

INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

31/3/23 31/3/22
Notes £ £

REVENUE 4,189,261 2,772,603

Cost of sales 1,985,649 1,268,607
GROSS PROFIT 2,203,612 1,503,996

Administrative expenses 1,478,973 1,191,398
724,639 312,598

Other operating income 25,809 55,093
OPERATING PROFIT 4 750,448 367,691

Interest receivable and similar income 2,634 31
753,082 367,722

Interest payable and similar expenses 5 168,742 103,238
PROFIT BEFORE TAXATION 584,340 264,484

Tax on profit 6 16,048 67,608
PROFIT FOR THE FINANCIAL YEAR 568,292 196,876

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 568,292 196,876


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

568,292

196,876

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 8,021,435 8,262,554

CURRENT ASSETS
Inventories 8 19,658 11,969
Debtors 9 516,972 1,089,225
Cash at bank and in hand 185,322 356,944
721,952 1,458,138
CREDITORS
Amounts falling due within one year 10 2,309,466 3,541,476
NET CURRENT LIABILITIES (1,587,514 ) (2,083,338 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,433,921

6,179,216

CREDITORS
Amounts falling due after more than one
year

11

(3,000,005

)

(3,329,640

)

PROVISIONS FOR LIABILITIES 14 (536,013 ) (519,965 )
NET ASSETS 2,897,903 2,329,611

CAPITAL AND RESERVES
Called up share capital 15 100,000 100,000
Revaluation reserve 16 4,355,695 4,355,695
Retained earnings 16 (1,557,792 ) (2,126,084 )
SHAREHOLDERS' FUNDS 2,897,903 2,329,611

The financial statements were approved by the Board of Directors and authorised for issue on 27 October 2023 and were signed on its behalf by:





J R Kantaria - Director


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 100,000 (2,322,960 ) 4,355,695 2,132,735

Changes in equity
Total comprehensive income - 196,876 - 196,876
Balance at 31 March 2022 100,000 (2,126,084 ) 4,355,695 2,329,611

Changes in equity
Total comprehensive income - 568,292 - 568,292
Balance at 31 March 2023 100,000 (1,557,792 ) 4,355,695 2,897,903

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 1,323,766 706,092
Interest paid (168,742 ) (103,238 )
Net cash from operating activities 1,155,024 602,854

Cash flows from investing activities
Purchase of tangible fixed assets (89,036 ) (73,080 )
Interest received 2,634 31
Net cash from investing activities (86,402 ) (73,049 )

Cash flows from financing activities
Loan repaid during the year (329,630 ) (203,706 )
Inter company loans (910,614 ) (141,425 )
Net cash from financing activities (1,240,244 ) (345,131 )

(Decrease)/increase in cash and cash equivalents (171,622 ) 184,674
Cash and cash equivalents at beginning of
year

2

356,944

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 584,340 264,484
Depreciation charges 330,155 322,001
Finance costs 168,742 103,238
Finance income (2,634 ) (31 )
1,080,603 689,692
Increase in inventories (7,689 ) (4,797 )
(Increase)/decrease in trade and other debtors (17,133 ) 38,276
Increase/(decrease) in trade and other creditors 267,985 (17,079 )
Cash generated from operations 1,323,766 706,092

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 (171,622 ) 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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Plant and machinery - 10% on cost
Fixtures and fittings - 20% on cost
Computer equipment - 33% on cost

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 1,059,257 821,494
Social security costs 47,035 43,821
Other pension costs 18,273 13,832
1,124,565 879,147

The average number of employees during the year was as follows:
31/3/23 31/3/22

Management Staff 4 4
Employees 52 49
56 53

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 28,734 28,196

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 330,155 321,999
Auditors' remuneration 11,730 10,200
Non audit remuneration 2,300 1,750

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 167,673 102,101
Other interest 1,069 1,137
168,742 103,238

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 16,048 67,608
Tax on profit 16,048 67,608

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 584,340 264,484
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

111,025

50,252

Effects of:
Expenses not deductible for tax purposes 426 119
Income not taxable for tax purposes (500 ) (6 )
Depreciation in excess of capital allowances 19,110 38,611
Utilisation of tax losses (82,047 ) (88,976 )

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 8,611,738 6,956,474 1,060,027 74,617 16,702,856
Additions - 35,186 27,559 26,291 89,036
At 31 March 2023 8,611,738 6,991,660 1,087,586 100,908 16,791,892
DEPRECIATION
At 1 April 2022 906,674 6,776,608 682,403 74,617 8,440,302
Charge for year 86,678 21,466 216,792 5,219 330,155
At 31 March 2023 993,352 6,798,074 899,195 79,836 8,770,457
NET BOOK VALUE
At 31 March 2023 7,618,386 193,586 188,391 21,072 8,021,435
At 31 March 2022 7,705,064 179,866 377,624 - 8,262,554

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
£ £
Land4,277,8464,277,846
Building3,340,5403,427,218
7,618,3867,705,064

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 19,658 11,969

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/3/23 31/3/22
£ £
Trade debtors 140,554 139,117
Amounts owed by group undertakings 306,769 896,155
Other debtors 23,491 16,616
Prepayments 46,158 37,337
516,972 1,089,225

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/3/23 31/3/22
£ £
Bank loans and overdrafts (see note 12) 333,333 333,328
Trade creditors 119,818 85,174
Amounts owed to group undertakings 1,266,633 2,766,633
Tax 15 15
Social security and other taxes 28,786 23,419
Pensions Creditor 3,879 2,965
VAT 118,229 35,211
Other creditors 194,406 142,090
Accrued expenses 244,367 152,641
2,309,466 3,541,476

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31/3/23 31/3/22
£ £
Bank loans (see note 12) 3,000,005 3,329,640

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 333,333 333,328

Amounts falling due between one and two years:
Bank loan - 1-2 years 3,000,005 3,166,676

Amounts falling due between two and five years:
Bank loan - 2-5 years - 162,964

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 3,333,338 3,662,968

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 519,965
Provided during year 16,048
Balance at 31 March 2023 536,013

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/3/23 31/3/22
value: £ £
100,000 Ordinary 1 100,000 100,000

16. RESERVES
Retained Revaluation
earnings reserve Totals
£ £ £

At 1 April 2022 (2,126,084 ) 4,355,695 2,229,611
Profit for the year 568,292 568,292
At 31 March 2023 (1,557,792 ) 4,355,695 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.