Company registration number 04275686 (England and Wales)
CRYSTAL HOTELS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
CRYSTAL HOTELS PLC
COMPANY INFORMATION
Directors
Mr S Kadir
Mr S Kadir
Company number
04275686
Registered office
9 Bonhill Street
London
EC2A 4DJ
Auditor
Begbies
9 Bonhill Street
London
EC2A 4DJ
CRYSTAL HOTELS PLC
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 15
CRYSTAL HOTELS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2022
- 1 -

The directors present the strategic report for the year ended 31 August 2022.

Review of the business

During the year the company made a loss of £35,857, as against a prior year loss of £34,434. The second half of the year nevertheless represented a period of recovery for the company as three of the four hotels within the Crystal Hotels group, which are the company's source of income, reopened and have trade profitably in line with the post-COVID recovery of the London hotel industry. A fourth hotel is currently closed for a major refurbishment.

 

The exceptional losses in the last 24 months reflect a period of severe distress in the London hotel market following the onset of the coronavirus crisis in early 2020. The hotels within the Crystal Hotels group, which are the company's source of income, were forced to close following the introduction of lockdown restrictions, reopening in early 2022.

 

Although a loss was struck for the year to August 2022, this is attributable to the increase in the company's cost base following the end of furlough pre dating the recovery in the company's income stream by several months. Going forwards, the management fees received from the hotels are likely to cover the company's cost base, and it is anticipated that the company will record a profit for the year ended 31st August 2023. The hotels that the company serves are also forecast to continue to be profitable.

Principal risks and uncertainties

The directors consider that the principal risk affecting the company is that the recovery of the London hotel market after coronavirus is not as strong as forecast. The company will mitigate this risk by continued cost control, which the directors are confident will allow it to continue to settle its liabilities as they fall due.

On behalf of the board

Mr S Kadir
Director
23 November 2023
CRYSTAL HOTELS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2022
- 2 -

The directors present their annual report and financial statements for the year ended 31 August 2022.

Principal activities

The principal activity of the company continued to be that of providing management services to a group of London hotels

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S Kadir
Mr S Kadir
Results and dividends

The results for the year are set out on page 6

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Auditor

The auditor, Begbies, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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.

CRYSTAL HOTELS PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr S Kadir
Director
23 November 2023
CRYSTAL HOTELS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CRYSTAL HOTELS PLC
- 4 -
Opinion

We have audited the financial statements of Crystal Hotels plc (the 'company') for the year ended 31 August 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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.

Emphasis of matter

As noted in the strategic report, the company has been severely impacted by the coronavirus crisis, because the hotels it serves were forced to close following the introduction of lockdown restrictions, and it only became financially viable to reopen them after the year end. This materially reduced the company's turnover for the year. The company has responded by reducing it's cost base, and continues to be able to settle it's liabilities as they fall due.

 

However this fall in profits, together with uncertainty over the timing and extent of recovery in the London tourist market, gives rise to a fundamental uncertainty over the company's ability to continue as a going concern.

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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

CRYSTAL HOTELS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CRYSTAL HOTELS PLC
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, included fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- Agreement of the financial statements disclosures to underlying supporting documentation;

 

- Enquiries and confirmation of management as to their identification of any non-compliance with laws and regulations, or any actual or potential claims;

 

- Incorporating unpredictability into the nature, timing and/or extent of testing;

 

- Evaluation of the selection and application of the accounting policies chosen by the company;

 

- In relation to the risk of management override of controls, by undertaking procedures to review journal entries and evaluating whether there was evidence of bias that represented a risk of material misstatement due to fraud; and

 

- We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements.

 

CRYSTAL HOTELS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CRYSTAL HOTELS PLC
- 6 -

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion.

 

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Begbies Chartered Accountants
Statutory Auditor
24 November 2023
Mr Robert Maples ACA
On behalf of Begbies Chartered Accountants
9 Bonhill Street
London
EC2A 4DJ
CRYSTAL HOTELS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2022
- 7 -
2022
2021
Notes
£
£
Turnover
2
90,380
-
Administrative expenses
(132,910)
(106,035)
Other operating income
7,810
71,601
Operating loss
3
(34,720)
(34,434)
Interest payable and similar expenses
5
(1,137)
-
0
Loss before taxation
(35,857)
(34,434)
Tax on loss
-
0
-
0
Loss for the financial year
(35,857)
(34,434)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CRYSTAL HOTELS PLC
BALANCE SHEET
AS AT
31 AUGUST 2022
31 August 2022
- 8 -
2022
2021
Notes
£
£
£
£
Current assets
Debtors
7
67,310
45,896
Cash at bank and in hand
10,497
8,407
77,807
54,303
Creditors: amounts falling due within one year
8
(98,593)
(39,013)
Net current (liabilities)/assets
(20,786)
15,290
Creditors: amounts falling due after more than one year
9
(38,080)
(38,299)
Net liabilities
(58,866)
(23,009)
Capital and reserves
Called up share capital
11
50,000
50,000
Profit and loss reserves
(108,866)
(73,009)
Total equity
(58,866)
(23,009)
The financial statements were approved by the board of directors and authorised for issue on 24 November 2023 and are signed on its behalf by:
Mr S Kadir
Director
Company registration number 04275686 (England and Wales)
CRYSTAL HOTELS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2020
50,000
147,750
197,750
Year ended 31 August 2021:
Loss and total comprehensive income for the year
-
(34,434)
(34,434)
Balance at 31 August 2021
50,000
(73,009)
(23,009)
Year ended 31 August 2022:
Loss and total comprehensive income for the year
-
(35,857)
(35,857)
Balance at 31 August 2022
50,000
(108,866)
(58,866)
CRYSTAL HOTELS PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
13
8,246
(43,002)
Interest paid
(1,137)
-
0
Net cash inflow/(outflow) from operating activities
7,109
(43,002)
Financing activities
Repayment of borrowings
(5,019)
(1,701)
Net cash used in financing activities
(5,019)
(1,701)
Net increase/(decrease) in cash and cash equivalents
2,090
(44,703)
Cash and cash equivalents at beginning of year
8,407
53,110
Cash and cash equivalents at end of year
10,497
8,407
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
- 11 -
1
Accounting policies
Company information

Crystal Hotels plc is a public company limited by shares incorporated in England and Wales. The registered office is 9 Bonhill Street, London, EC2A 4DJ.

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.

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
Going concern

As disclosed in the strategic report, the losses resulting from the closure of the hotels it servestrue in March 2020 gave rise to a material uncertainty regarding the company's ability to continue as a going concern. In the judgement of the directors, this risk has receded following the return to profitability of the hotels after reopening in early 2022.

 

The company has responded to losses incurred in recent years by addressing its cost base, and will continue to monitor costs closely. After the year end, the company has continued to meet all third party liabilities as they fall due.

 

Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

 

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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:

Plant and equipment
33.33%
1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and includes all company bank accounts.

CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 12 -
1.6
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.

 

The company only enters into basic financial instruments such as cash at bank, trade debtors and trade creditors, bank loans or amounts due to/from connected companies. Short term receivables are measured at transaction price, less any impairment. Short term payables are measured at transaction price. Long term payables, which relate to a bank loan, are initially measured at transaction price, and subsequently measured at amortised cost using the effective interest method.

1.7
Employee benefits

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.

1.8
Leases

Rentals payable under operating leases are charged to income on a straight line basis over the term of the relevant lease.

2
Turnover

An analysis of the company's turnover is as follows:

2022
2021
£
£
Turnover analysed by class of business
Management fees
90,380
-
2022
2021
£
£
Turnover analysed by geographical market
UK
90,380
-
3
Operating loss
2022
2021
Operating loss for the year is stated after charging:
£
£
Current year audit fees
3,500
3,500
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 13 -
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Operations
5
5

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
86,116
78,506
Social security costs
1,414
2,741
Pension costs
1,456
1,406
88,986
82,653
5
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,137
-
6
Tangible fixed assets
Plant and equipment
£
Cost
At 1 September 2021 and 31 August 2022
16,734
Depreciation and impairment
At 1 September 2021 and 31 August 2022
16,734
Carrying amount
At 31 August 2022
-
0
At 31 August 2021
-
0
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 14 -
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
61,276
24,986
Other debtors
6,034
20,910
67,310
45,896
8
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
10
5,200
10,000
Trade creditors
5,732
10,722
Taxation and social security
1,216
1,737
Other creditors
79,445
9,554
Accruals and deferred income
7,000
7,000
98,593
39,013
9
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loan
10
38,080
38,299
10
Loans and overdrafts
2022
2021
£
£
Bank loans
43,280
48,299
Payable within one year
5,200
10,000
Payable after one year
38,080
38,299

Creditors falling due after more than one year represent a bank loan received under the Coronavirus Bounce Back Loan Scheme.

11
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
50,000
50,000
50,000
50,000
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 15 -
12
Related party transactions

During the year the company invoiced management fees of £90,380 to Kadir & Co Management ltd and Dewanee ltd, which are both companies under common control (2021: £0). The fees were charged in the normal course of the company's business.

 

At 31st August 2022, the company's balance sheet showed trade debtors due from the above companies of £61,276 and other creditors payable of £78,765.

 

Crystal Hotels plc, Kadir & Co Management ltd and Dewanee ltd are under common control.

13
Cash generated from operations
2022
2021
£
£
Loss for the year after tax
(35,857)
(34,434)
Adjustments for:
Finance costs
1,137
-
0
Movements in working capital:
(Increase) in debtors
(21,414)
(23,154)
Increase in creditors
64,380
14,586
Cash generated from/(absorbed by) operations
8,246
(43,002)
14
Analysis of changes in net debt
1 September 2021
Cash flows
31 August 2022
£
£
£
Cash at bank and in hand
8,407
2,090
10,497
Borrowings excluding overdrafts
(48,299)
5,019
(43,280)
(39,892)
7,109
(32,783)
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