Company registration number 00258176 (England and Wales)
THE COURT HOTEL (BROMLEY) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
THE COURT HOTEL (BROMLEY) LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
4 - 12
THE COURT HOTEL (BROMLEY) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
5
8,600
11,000
Tangible assets
4
1,154,640
1,105,747
Investment properties
6
700,000
675,000
Investments
7
1,043,020
632,020
2,906,260
2,423,767
Current assets
Stocks
22,353
19,598
Debtors falling due after more than one year
8
3,144
Debtors falling due within one year
8
292,356
240,147
Cash at bank and in hand
2,513,624
2,343,592
2,828,333
2,606,481
Creditors: amounts falling due within one year
9
(881,780)
(748,190)
Net current assets
1,946,553
1,858,291
Total assets less current liabilities
4,852,813
4,282,058
Provisions for liabilities
(16,845)
Net assets
4,835,968
4,282,058
Capital and reserves
Called up share capital
130,000
130,000
Revaluation reserve
560,434
535,434
Capital redemption reserve
20,000
20,000
Profit and loss reserves
4,125,534
3,596,624
Total equity
4,835,968
4,282,058
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 13 November 2023 and are signed on its behalf by:
D A Guile
Director
Company Registration No. 00258176
THE COURT HOTEL (BROMLEY) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
130,000
20,000
3,477,250
3,627,250
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
904,808
904,808
Dividends
-
-
-
(250,000)
(250,000)
Revaluation of investment property
-
535,434
-
(535,434)
-
Balance at 31 March 2022
130,000
535,434
20,000
3,596,624
4,282,058
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
853,910
853,910
Dividends
-
-
-
(300,000)
(300,000)
Revaluation of investment property
-
25,000
-
(25,000)
-
Balance at 31 March 2023
130,000
560,434
20,000
4,125,534
4,835,968
THE COURT HOTEL (BROMLEY) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
16
769,455
890,055
Income taxes paid
(77,191)
(1,413)
Net cash inflow from operating activities
692,264
888,642
Investing activities
Purchase of intangible assets
(12,000)
Purchase of tangible fixed assets
(262,546)
(135,090)
Interest received
40,314
5,757
Net cash used in investing activities
(222,232)
(141,333)
Financing activities
Dividends paid
(300,000)
(250,000)
Net cash used in financing activities
(300,000)
(250,000)
Net increase in cash and cash equivalents
170,032
497,309
Cash and cash equivalents at beginning of year
2,343,592
1,846,283
Cash and cash equivalents at end of year
2,513,624
2,343,592
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
1
Accounting policies
Company information
The Court Hotel (Bromley) Limited (the 'company') is a private company limited by shares incorporated in England and Wales. The registered office is The Bromley Court Hotel, Bromley Hill, Bromley, Kent, BR1 4JD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents net invoiced sales of goods and services (being room income, restaurant sales and other usual supplies made by a hotel) exclusive of value added tax and trade discounts. Turnover is recognised once the performance of the service has been concluded or goods have been delivered.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website development
20% on cost
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
2% on cost
Fixtures, fittings & equipment
10 - 20% on cost
Plant and machinery
10 - 20% on cost
Computer equipment
20% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.5
Investment properties
Investment property is property held to earn rentals and/or for capital appreciation.
Initially, investment property is recognised at cost, which includes the purchase cost and any directly attributable expenditure.
When a property which was previously owner-occupied meets the definition of investment property, the underlying tangible fixed asset policy is applied up to the date of change in use. Any difference at the date of change in use, between the carrying amount of the property (as a tangible fixed asset) and its fair value at that date, is accounted for as a revaluation by way of a credit to the revaluation reserve. In this way, the fair value at the point of transfer is recognised as the deemed cost of the investment property.
Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price.
Cost is calculated using the weighted average method.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is provided in respect of the tax effect of all timing differences that have originated but not reversed at the balance sheet date.
A deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on a non-discounted basis at the tax rates that are expected to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 7 -
1.14
Retirement benefits
The company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the company to fund in respect of the year.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit or loss account on a straight line basis over the term of the relevant lease. Where COVID-19 rental concessions have been received, the company recognises the concession on a systematic basis over the periods the change in lease payments is intended to compensate.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
100
136
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
4
Tangible fixed assets
Freehold property
Fixtures, fittings and equipment
Plant and machinery
Total
£
£
£
£
Cost
At 1 April 2022
2,669,672
865,802
302,586
3,838,060
Additions
217,909
44,637
262,546
Disposals
(1,410)
(1,410)
At 31 March 2023
2,668,262
1,083,711
347,223
4,099,196
Depreciation and impairment
At 1 April 2022
2,235,272
381,158
115,883
2,732,313
Depreciation charged in the year
53,365
110,572
48,306
212,243
At 31 March 2023
2,288,637
491,730
164,189
2,944,556
Carrying amount
At 31 March 2023
379,625
591,981
183,034
1,154,640
At 31 March 2022
434,400
484,644
186,703
1,105,747
5
Intangible fixed assets
Website
Development
£
Cost
At 1 April 2022 and 31 March 2023
12,000
Amortisation and impairment
At 1 April 2022
1,000
Amortisation charged for the year
2,400
At 31 March 2023
3,400
Carrying amount
At 31 March 2023
8,600
At 31 March 2022
11,000
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
6
Investment property
2023
£
Fair value
At 1 April 2022
675,000
Revaluations
25,000
At 31 March 2023
700,000
The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors at the current and prior reporting date. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The historic cost of the investment property is £53,378.
7
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
1,043,020
632,020
Fixed asset investments not carried at market value
The company holds 49% of the share capital of Heathland Hotels Limited, a company incorporated in England & Wales. Fixed asset investments are held at fair value.
Movements in fixed asset investments
Shares in group undertakings and participating interests
£
Cost
At 1 April 2022
1,043,020
Valuation changes
411,000
At 31 March 2023
1,454,020
Impairment
At 1 April 2022 & 31 March 2023
411,000
Carrying amount
At 1 April 2022
1,043,020
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
74,300
73,967
Prepayments and accrued income
218,056
166,180
292,356
240,147
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 10)
3,144
Total debtors
292,356
243,291
9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
249,963
220,218
Corporation tax
74,364
77,109
Other taxation and social security
164,335
109,618
Other creditors
393,118
341,245
881,780
748,190
10
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
44,776
-
-
(33,146)
Tax losses
(197,788)
-
-
197,788
Retirement benefit obligations
(1,651)
-
-
3,760
Investment property
171,508
-
-
(165,258)
16,845
-
-
3,144
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Deferred taxation
(Continued)
- 11 -
2023
Movements in the year:
£
Asset at 1 April 2022
(3,144)
Charge to profit or loss
19,989
Liability at 31 March 2023
16,845
Deferred tax is recognised at a rate of 25% (2022: 19%).
11
Retirement benefit schemes
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £21,320 (2022: £19,792) were payable to the fund at the balance sheet date and are included within other creditors.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Catherine Cooper FCCA
Statutory Auditor:
Azets Audit Services
13
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
6,436
29,045
Reduction in rent payments recognised in profit or loss arising from the COVID-19 pandemic
-
6,000
Lessor
THE COURT HOTEL (BROMLEY) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Operating lease commitments
(Continued)
- 12 -
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2023
2022
£
£
14,400
13,200
14
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
32,326
-
15
Related party transactions
During the year the company entered into the following transactions with related parties:
During the period two (2022: two) directors charged the company for property rental, amounting to £15,000 (2022: £10,417).
At the year end, £Nil (2022: £4,000) was owed to a director in respect of a bonus.
16
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
853,910
904,808
Adjustments for:
Taxation charged
94,435
167,922
Investment income
(40,314)
(5,757)
Loss on disposal of tangible fixed assets
1,410
33,657
Fair value gain on investment properties
(25,000)
(661,030)
Amortisation and impairment of intangible assets
2,400
1,000
Depreciation and impairment of tangible fixed assets
212,243
181,473
Other gains and losses
(411,000)
-
Movements in working capital:
Increase in stocks
(2,755)
(11,143)
Increase in debtors
(52,209)
(34,755)
Increase in creditors
136,335
313,880
Cash generated from operations
769,455
890,055
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