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Fonab Castle Hotel Limited

Annual Report and Financial Statements
Period from 1 February 2022 to 31 December 2022

Registration number: 08275224

 

Fonab Castle Hotel Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 11

 

Fonab Castle Hotel Limited

Balance Sheet

31 December 2022

Note

31 December
2022
£

Unaudited
31 January
2022
£

Fixed assets

 

Tangible assets

4

3,446,874

3,411,741

Current assets

 

Stocks

5

120,262

100,402

Debtors

6

693,690

220,928

Cash at bank and in hand

 

284,099

1,133,656

 

1,098,051

1,454,986

Creditors: Amounts falling due within one year

7

(2,047,218)

(1,555,561)

Net current liabilities

 

(949,167)

(100,575)

Total assets less current liabilities

 

2,497,707

3,311,166

Creditors: Amounts falling due after more than one year

7

-

(1,430,511)

Provisions for liabilities

(619,054)

(526,752)

Net assets

 

1,878,653

1,353,903

Capital and reserves

 

Called up share capital

9

1

1

Profit and loss account

1,878,652

1,353,902

Shareholders' funds

 

1,878,653

1,353,903

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 23 November 2023 and signed on its behalf by:
 

.........................................
J J Bester
Director

Company Registration Number: 08275224

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
2nd Floor
10 Bridge Street
Bath
Somerset
BA2 4AS

The principal place of business is:
Fonab Castle Hotel and Spa
Foss Road
Pitlochry
PH16 5ND

These financial statements were authorised for issue by the Board on 23 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in pounds sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The preparation of financial statements in conformity with FRS102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are outlined within this note.

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 23 November 2023 was Thomas Roach BSc FCA, who signed for and on behalf of PKF Francis Clark.

Disclosure of long or short period

The company has chosen to prepare its financial statements for the 11 months to December 2022, in order to bring its year end in line with its ultimate parent undertaking, Blantree Holdco Limited. The comparative period spans the period from 1 July 2021 to 31 January 2022, being the day before the aquisition of the company by Fonab SPV Limited.

Due to the periods being of differing lengths the performances are not directly comparable.

Going concern

At the balance sheet date the company has net current liabilities of £949,167 (January 2022 - £100,575 net current liabilities), and net assets of £1,878,653 (January 2022 - £1,353,903)

The directors have considered a number of factors in respect of the appropriateness of the going concern assertion. The company is supported by its parent undertaking, Fonab SPV Limited and the wider group under the control of Blantree Holdco Limited.

After due consideration of the factors outlined, the Directors continue to apply the going concern basis to the preparation of the financial statements.

Revenue recognition

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Accommodation revenue is recognised at the point of the customer staying in the room. Deposits received in advance of customer stays are treated as payments on account and recognised within other creditors, part of creditors due within one year.

Food, beverage and all other sales are recognised at the point of sale.

Rent received is recognised in other operating income.

Government grants

During the prior period the company recognised Coronavirus Job Retention Scheme (“CJRS”) grant income from the Government designed to mitigate the impact of Covid 19. The company elected to account for such grants under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in “other operating income” within profit or loss in the same period as the related expenditure.

The company has not directly benefited from any other forms of government assistance in the current or prior period.

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation 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 taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

Straight line over 50 years

Plant and machinery

Straight line over 10 years

Motor vehicles

Straight line over 5 years

Furniture, fittings and equipment

Straight line over 5 years

No depreciation has been provided for on leasehold buildings on the basis that, in the Directors opinion, the residual value of the property is so high that any depreciation charge would be immaterial.

The directors have considered the carrying value of the property (including the freehold element held in the financial statements of Fonab SPV Limited), in light of external valuations performed for internal reporting purposes, and do not believe that an impairment is required.
 

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost
is determined using the first-in, first-out (FIFO) method.

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Payments on account; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.


 

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

Critical judgement and estimation uncertainty

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key area of judgement in the financial statements can be summarised as follows:

Carrying value of property
The Directors have carefully considered the depreciation estimates applied on the tangible assets held by the Company. This assessment is performed on an annual basis and would be amended when necessary to reflect current estimates based on technological advancements, future investments, economic utilisation and physical condition of each asset. Valuations perfomed for internal purposes have been considered by the Directors and in light of this no impairment is viewed as being necessary.

The carrying value of tangible fixed assets at the balance sheet date is £3,446,874 (January 2022 - £3,411,741).

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was 111 (2022 - 108).

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 February 2022

3,637,978

162,104

482,495

-

4,282,577

Additions

90,254

134,543

18,000

7,670

250,467

Disposals

-

-

(447,245)

-

(447,245)

At 31 December 2022

3,728,232

296,647

53,250

7,670

4,085,799

Depreciation

At 1 February 2022

479,276

118,899

272,661

-

870,836

Charge for the period

533

17,898

4,849

486

23,766

Eliminated on disposal

-

-

(255,677)

-

(255,677)

At 31 December 2022

479,809

136,797

21,833

486

638,925

Carrying amount

At 31 December 2022

3,248,423

159,850

31,417

7,184

3,446,874

At 31 January 2022

3,158,702

43,205

209,834

-

3,411,741

Included within the net book value of land and buildings above is £276,864 (2022 - £276,864) in respect of freehold land and buildings and £2,971,559 (2022 - £2,881,838) in respect of long leasehold land and buildings.
 

Included within motor vehicles is £14,916 (Jan 2022 - £207,632) of assets held under hire purchase.

5

Stocks

31 December
2022
£

Unaudited
31 January
2022
£

Other inventories

120,262

100,402

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

6

Debtors

31 December
2022
£

Unaudited
31 January
2022
£

Trade debtors

230,799

1,105

Amounts owed by group undertakings

7,254

-

Other debtors

115,058

119,100

Prepayments

340,579

100,723

693,690

220,928

7

Creditors

Creditors: amounts falling due within one year

Note

31 December
2022
£

Unaudited
31 January
2022
£

Due within one year

 

Loans and borrowings

8

18,256

629,543

Trade creditors

 

564,979

163,668

Amounts owed to group undertakings

 

626,979

-

Taxation and social security

 

149,861

92,604

Other creditors

 

208,508

166,790

Accruals and deferred income

 

160,602

35,812

Payments on account

 

318,033

467,144

 

2,047,218

1,555,561

Creditors: amounts falling due after more than one year

Note

31 December
2022
£

Unaudited
31 January
2022
£

Due after one year

 

Loans and borrowings

8

-

1,430,511

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

8

Loans and borrowings

31 December
2022
£

Unaudited
31 January
2022
£

Current loans and borrowings

Bank borrowings

-

422,472

Hire purchase contracts

18,256

207,071

18,256

629,543

31 December
2022
£

Unaudited
31 January
2022
£

Loans and borrowings due after one year

Bank borrowings

-

1,352,769

HP and finance lease liabilities

-

77,742

-

1,430,511

The amounts shown as bank loans were settled in the year.

The amounts shown as hire purchase are secured against the assets to which they relate.

9

Share capital

Allotted, called up and fully paid shares

 

31 December
2022

31 January
2022

 

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

         
 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

10

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

31 December
2022
£

31 January
2022
£

Not later than one year

18,256

207,071

Later than one year and not later than five years

-

77,742

18,256

284,813

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The company has certain assets held under operating lease agreements.

The total amount of financial commitments not included in the balance sheet is £58,093 (2022 - £Nil).

The company has provided a guarantee for bank borrowings in its immediate parent undertaking. In addition the company has provided a guarantee in respect of borrorings between its immediate parent undertaking and the ultimate parent undertaking Blantree Holdco Limited.

The total amount of guarantees not included in the balance sheet is £14,081,643 (2022 - £Nil). Of this balance £6,793,885 relates to inter group borrowing and £7,287,758 relates to bank borrowings. The purposes of these borrowings was to acquire the entire shareholding of Fonab Castle Hotel Limited, as well as the freehold property of the Fonab Castle its previous owners.

12

Audit report

The financial statements for the period ended 31 December 2022 were audited by:

PKF Francis Clark, statutory auditor
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

The senior statutory auditor was Thomas Roach BSc FCA

An unqualified and unmodified auditors' report on the financial statements for the period ended 31 December has been issued.

 

Fonab Castle Hotel Limited

Notes to the Financial Statements

Period from 1 February 2022 to 31 December 2022

13

Parent and ultimate parent undertaking

The company's immediate parent is Fonab SPV Limited, incorporated in England and Wales. Its registered office is 2nd Floor, 10 Bridge Street, Bath, Somerset, BA2 4AS.

 The ultimate parent is Blantree Holdco Limited, incorporated in England and Wales. Its registered office is 2nd Floor, 10 Bridge Street, Bath, Somerset, BA2 4AS.

 The most senior parent entity producing publicly available financial statements is Blantree Holdco Limited. These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ