Caseware UK (AP4) 2022.0.179 2022.0.179 2023-02-282023-02-28falsetrue2022-03-01164truefalseProvision of hotel and catering services110 SC034990 2022-03-01 2023-02-28 SC034990 2021-03-01 2022-02-28 SC034990 2023-02-28 SC034990 2022-02-28 SC034990 2021-03-01 SC034990 c:CompanySecretary1 2022-03-01 2023-02-28 SC034990 c:Director2 2022-03-01 2023-02-28 SC034990 c:Director3 2022-03-01 2023-02-28 SC034990 c:RegisteredOffice 2022-03-01 2023-02-28 SC034990 d:Buildings 2022-03-01 2023-02-28 SC034990 d:Buildings 2023-02-28 SC034990 d:Buildings 2022-02-28 SC034990 d:Buildings d:OwnedOrFreeholdAssets 2022-03-01 2023-02-28 SC034990 d:FurnitureFittings 2022-03-01 2023-02-28 SC034990 d:FurnitureFittings 2023-02-28 SC034990 d:FurnitureFittings 2022-02-28 SC034990 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-03-01 2023-02-28 SC034990 d:OwnedOrFreeholdAssets 2022-03-01 2023-02-28 SC034990 d:CurrentFinancialInstruments 2023-02-28 SC034990 d:CurrentFinancialInstruments 2022-02-28 SC034990 d:Non-currentFinancialInstruments 2023-02-28 SC034990 d:Non-currentFinancialInstruments 2022-02-28 SC034990 d:CurrentFinancialInstruments d:WithinOneYear 2023-02-28 SC034990 d:CurrentFinancialInstruments d:WithinOneYear 2022-02-28 SC034990 d:Non-currentFinancialInstruments d:AfterOneYear 2023-02-28 SC034990 d:Non-currentFinancialInstruments d:AfterOneYear 2022-02-28 SC034990 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2023-02-28 SC034990 d:Non-currentFinancialInstruments d:BetweenOneTwoYears 2022-02-28 SC034990 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2023-02-28 SC034990 d:Non-currentFinancialInstruments d:BetweenTwoFiveYears 2022-02-28 SC034990 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2023-02-28 SC034990 d:Non-currentFinancialInstruments d:MoreThanFiveYears 2022-02-28 SC034990 d:UKTax 2022-03-01 2023-02-28 SC034990 d:UKTax 2021-03-01 2022-02-28 SC034990 d:ShareCapital 2023-02-28 SC034990 d:ShareCapital 2022-02-28 SC034990 d:ShareCapital 2021-03-01 SC034990 d:RevaluationReserve 2022-03-01 2023-02-28 SC034990 d:RevaluationReserve 2023-02-28 SC034990 d:RevaluationReserve 2021-03-01 2022-02-28 SC034990 d:RevaluationReserve 2022-02-28 SC034990 d:RevaluationReserve 2021-03-01 SC034990 d:RetainedEarningsAccumulatedLosses 2022-03-01 2023-02-28 SC034990 d:RetainedEarningsAccumulatedLosses 2023-02-28 SC034990 d:RetainedEarningsAccumulatedLosses 2021-03-01 2022-02-28 SC034990 d:RetainedEarningsAccumulatedLosses 2022-02-28 SC034990 d:RetainedEarningsAccumulatedLosses 2021-03-01 SC034990 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-02-28 SC034990 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-02-28 SC034990 d:FinancialAssetsAmortisedCost 2023-02-28 SC034990 d:FinancialAssetsAmortisedCost 2022-02-28 SC034990 d:FinancialLiabilitiesAmortisedCost 2023-02-28 SC034990 d:FinancialLiabilitiesAmortisedCost 2022-02-28 SC034990 c:OrdinaryShareClass1 2022-03-01 2023-02-28 SC034990 c:OrdinaryShareClass1 2021-03-01 2022-02-28 SC034990 c:OrdinaryShareClass1 2023-02-28 SC034990 c:OrdinaryShareClass1 2022-02-28 SC034990 c:FRS102 2022-03-01 2023-02-28 SC034990 c:Audited 2022-03-01 2023-02-28 SC034990 c:FullAccounts 2022-03-01 2023-02-28 SC034990 c:PrivateLimitedCompanyLtd 2022-03-01 2023-02-28 SC034990 d:AcceleratedTaxDepreciationDeferredTax 2023-02-28 SC034990 d:AcceleratedTaxDepreciationDeferredTax 2022-02-28 SC034990 5 2022-03-01 2023-02-28 SC034990 6 2022-03-01 2023-02-28 xbrli:shares iso4217:GBP xbrli:pure
Registered number: SC034990













MARCLIFFE HOTEL LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023



 
MARCLIFFE HOTEL LIMITED
 

COMPANY INFORMATION


Directors
G S Spence 
R J Spence 




Company secretary
Stronachs Secretaries Limited



Registered number
SC034990



Registered office
28 Albyn Place

Aberdeen

AB10 1YL




Trading Address
North Deeside Road
Pitfodels

Aberdeen

AB15 9YA






Independent auditors
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
MARCLIFFE HOTEL LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 27


 
MARCLIFFE HOTEL LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

Introduction
 
The principal activity of the company is the provision of hotel and catering services.

Business review
 
The past 12 months have seen an increase in turnover from £3.33m to £4.76m. Trading has steadily improved since restrictions were lifted and the directors are confident that trading will continue to improve despite tough economic conditions.  The revenue increase has been offset by rising prices for the cost of food and beverage and the increase in head count to service additional events.
The main aim for the year ahead is to continue to maintain standards and retain customers together with increasing resources and capacity to maximise corporate business and to keep expanding in the tourism sector, again concentrating on visitors from Europe and the United States.

Principal risks and uncertainties
 
The directors considers there to be an appropriate structure in place to plan for and mitigate risks.
Competitive risk:  The company operates in a competitive market and to some extent the level of trading is affected by the local economy which is reliant to a degree on the energy sector. The risks associated with this are mitigated by ensuring the company offers a high quality of service across all areas of the business and by targeting the tourism sector as well as business customers. 
Credit risk:  The key credit risk is in relation to debtors.  The directors consider there be sufficient controls in place to mitigate this risk, with a regular review of outstanding balances.
The company's financial instruments comprise cash at bank, borrowings, trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company’s operations and the main risk arising from them is interest rate fluctuations.
Liquidity risk:  The company continues to enjoy a good relationship with the bank and borrowing facilities have been renewed during the year with new long term debt facilities in place.  The company aims to maintain an adequate working capital position, and forecasts to ensure that there are adequate facilities in place to meet liabilities as they fall due.

Financial key performance indicators
 
The key financial performance indicators for the company are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin, room occupancy figures, and function spend per head.   
 

This report was approved by the board and signed on its behalf.



R J Spence
Director

Date: 24 November 2023

Page 1
 

 
MARCLIFFE HOTEL LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors present their report and the financial statements for the year ended 28 February 2023.

Results and dividends

The loss for the year, after taxation, amounted to £146,711 (2022 - profit £30,354).

Dividends of £142,000 were paid during the period (2022 - £100,000).

Directors

The directors who served during the year were:

G S Spence 
R J Spence 

Future developments

The main aim for the year ahead is to maintain a similar level of corporate business and to expand in the tourism sector, concentrating on customers from Europe, USA and the Far East.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no post balance sheet events impacting the company.

Auditors

The auditorsAnderson Anderson & Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





R J Spence
Director

Date: 24 November 2023

Page 2
 

 
MARCLIFFE HOTEL LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3
 

 
MARCLIFFE HOTEL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCLIFFE HOTEL LIMITED
 

Opinion


We have audited the financial statements of Marcliffe Hotel Limited (the 'company') for the year ended 28 February 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 28 February 2023 and of its loss 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 4
 

 
MARCLIFFE HOTEL LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCLIFFE HOTEL LIMITED (CONTINUED)

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


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:


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 Directors' responsibilities statement set out on page 3, 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.


Page 5
 

 
MARCLIFFE HOTEL LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCLIFFE HOTEL LIMITED (CONTINUED)

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 an Auditors' 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, including 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:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Taxation legislation, licensing and health and safety legislation.

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the company’s key performance indicators to meet targets
Timing and completeness of revenue recognition
Management judgement applied in calculating provisions
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading

Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness
Reviewing a sample of sales transactions to confirm recognition appropriate
Evaluating the business rationale of significant transactions outside the normal course of business
Reviewing judgments made by management in their calculation of accounting estimates for potential management bias
Enquiries of management about litigation and claims and inspection of relevant correspondence
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations
Reviewing minutes of meetings of those charged with governance to identify any matters indicating actual or potential fraud

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 6
 

 
MARCLIFFE HOTEL LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MARCLIFFE HOTEL LIMITED (CONTINUED)

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 2006Our 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 an Auditors' 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.





Christopher Masson (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

27 November 2023
Page 7
 

 
MARCLIFFE HOTEL LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023
2022
Note
£
£

  

Turnover
 4 
4,758,945
3,331,913

Cost of sales
  
(1,160,478)
(731,423)

Gross profit
  
3,598,467
2,600,490

Administrative expenses
  
(3,594,343)
(2,496,697)

Other operating income
 5 
-
140,014

Operating profit
  
4,124
243,807

Interest payable and similar expenses
 9 
(154,839)
(119,149)

(Loss)/profit before tax
  
(150,715)
124,658

Tax on (loss)/profit
 10 
4,004
(94,304)

(Loss)/profit for the financial year
  
(146,711)
30,354

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 11 to 27 form part of these financial statements.

Page 8
 

 
MARCLIFFE HOTEL LIMITED
REGISTERED NUMBER:SC034990

BALANCE SHEET
AS AT 28 FEBRUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
10,174,576
10,178,317

Investments
 13 
108,000
110,000

  
10,282,576
10,288,317

Current assets
  

Stocks
 14 
98,834
118,092

Debtors: amounts falling due after more than one year
 15 
132,787
132,787

Debtors: amounts falling due within one year
 15 
399,427
1,164,395

Cash at bank and in hand
 16 
394,457
603,553

  
1,025,505
2,018,827

Creditors: amounts falling due within one year
 17 
(1,443,625)
(1,561,541)

Net current (liabilities)/assets
  
 
 
(418,120)
 
 
457,286

Total assets less current liabilities
  
9,864,456
10,745,603

Creditors: amounts falling due after more than one year
 18 
(2,892,657)
(3,520,476)

Provisions for liabilities
  

Deferred tax
 22 
(210,948)
(175,565)

  
 
 
(210,948)
 
 
(175,565)

Net assets
  
6,760,851
7,049,562


Capital and reserves
  

Called up share capital 
 23 
40,101
40,101

Revaluation reserve
  
5,081,082
5,169,082

Profit and loss account
  
1,639,668
1,840,379

  
6,760,851
7,049,562


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




R J Spence
Director

Date: 24 November 2023

The notes on pages 11 to 27 form part of these financial statements.

Page 9
 

 
MARCLIFFE HOTEL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 March 2022
40,101
5,169,082
1,840,379
7,049,562


Comprehensive income for the year

Loss for the year
-
-
(146,711)
(146,711)

Dividends: Equity capital
-
-
(142,000)
(142,000)

Transfer to/from profit and loss account
-
(88,000)
88,000
-


At 28 February 2023
40,101
5,081,082
1,639,668
6,760,851



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2022


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 March 2021
40,101
5,257,082
1,822,025
7,119,208


Comprehensive income for the year

Profit for the year
-
-
30,354
30,354

Dividends: Equity capital
-
-
(100,000)
(100,000)

Transfer to/from profit and loss account
-
(88,000)
88,000
-


At 28 February 2022
40,101
5,169,082
1,840,379
7,049,562


The notes on pages 11 to 27 form part of these financial statements.

Page 10
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1.


General information

The company is a private company limited by shares and is incorporated in the United Kingdom. The address of the registered office is 28 Albyn Place, Aberdeen, AB10 1YL.  The principal activity of the company is the provision of hotel and catering services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

FRS 102 exemptions

The company satisfies the criteria of being a qualifying company as defined in FRS 102 section 1.12.  Its financial statements are consolidated into the financial statements of Pitfodels Holdings Limited which can be obtained from Companies House.  As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:
a)  No cash flow statement has been presented for the company.
b)  Disclosures in respect of financial instruments have not been presented.
c)  Disclosures in respect of related party transactions with fellow group companies have not been
     presented.

 
2.3

Going concern

The directors, having given due consideration to forecast occupancy levels and income from events, are of the opinion that the company has adequate working capital to execute its operations over the next 12 months. In reaching this assessment the impact of plausible downside scenarios have been reviewed, albeit confidence can be taken from historic trading experience and advance bookings in place.  The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements. 

Page 11
 

 
MARCLIFFE HOTEL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the Statement of comprehensive income.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue from the sale of food, beverages and spa treatments are recognised when they are sold.  Revenue from the rental of rooms is recognised when rooms are occupied.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.7

Finance costs

Finance costs are charged to the Statement of comprehensive income on a straight line basis so that the amount charged is at a constant rate on the carrying amount.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 12
 

 
MARCLIFFE HOTEL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan
The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 13
 

 
MARCLIFFE HOTEL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and a reducing balance basis.

Depreciation is provided on the following basis:

Freehold property
-
50 years straight line
Plant, fixtures and fittings
-
15% and 25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.12

Revaluation of tangible fixed assets

Individual freehold properties are carried at deemed cost as permitted by the transitional rules within FRS 102. Deemed cost is based on a historic revaluation which is deemed to be fair value at the transition date. Subsequent to transition, freehold properties are carried at this deemed cost less any accumulated impairment losses. 

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 14
 

 
MARCLIFFE HOTEL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

 
2.19

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets


Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Page 15
 

 
MARCLIFFE HOTEL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.



 
Page 16
 

 
MARCLIFFE HOTEL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements, requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements:
Carrying value of property
The directors consider, on an annual basis, whether changes in market conditions have led to any impairment in the valuation of property, using his judgement and market data available. In addition, judgement is applied to select an appropriate useful life and residual value to follow the basis of depreciation.  The directors have monitored the impact of the current economic conditions on the market value of the company’s property but at this stage consider the property valuations to remain appropriate.


4.


Turnover

Turnover is wholly attributable to the provision of accommodation and associated food and drink sales.

Page 17
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

5.


Other operating income

2023
2022
£
£

Government grants receivable
-
140,014

-
140,014



6.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements

20,700
18,500


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,050,891
1,454,480

Social security costs
159,226
102,341

Cost of defined contribution scheme
40,706
33,429

2,250,823
1,590,250


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management
7
6



Administration
9
6



Other
148
98

164
110

Page 18
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
15,000
15,000

15,000
15,000


There are no key management personnel other than the directors themselves.


9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
152,065
119,149

Other interest payable
2,774
-

154,839
119,149


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(37,717)
56,034

Adjustments in respect of previous periods
(1,670)
359


(39,387)
56,393


Total current tax
(39,387)
56,393

Deferred tax


Origination and reversal of timing differences
35,315
(5,559)

Changes to tax rates
-
43,470

Adjustment in respect of prior year
68
-

Total deferred tax
35,383
37,911


Taxation on (loss)/profit on ordinary activities
(4,004)
94,304
Page 19
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(150,715)
124,658


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
(28,636)
23,685

Effects of:


Expenses not deductible for tax purposes
1,332
1,860

Fixed asset differences
15,247
26,264

Adjustments to tax charge in respect of prior years
(1,602)
359

Deferred tax rate changes
8,475
42,136

Permanent differences
1,180
-

Total tax charge for the year
(4,004)
94,304


Factors that may affect future tax charges

The Government have announced that the corporation tax main rate will be increased to 25% for profits over £250,000 from 1 April 2023. As this rate has been substantively enacted the deferred tax provision has been based on the rate of 25%. 


11.


Dividends

2023
2022
£
£


Dividends
142,000
100,000

142,000
100,000

Page 20
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

12.


Tangible fixed assets





Freehold property
Fixtures and fittings
Total

£
£
£



Cost or valuation


At 1 March 2022
10,981,424
1,332,546
12,313,970


Additions
-
198,789
198,789



At 28 February 2023

10,981,424
1,531,335
12,512,759



Depreciation


At 1 March 2022
1,034,097
1,101,556
2,135,653


Charge for the year on owned assets
137,000
65,530
202,530



At 28 February 2023

1,171,097
1,167,086
2,338,183



Net book value



At 28 February 2023
9,810,327
364,249
10,174,576



At 28 February 2022
9,947,327
230,990
10,178,317

Page 21
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

           12.Tangible fixed assets (continued)

The freehold property occupied by the company was valued, as at 13 May 2015, by an External Valuer of Ryden LLP. The valuation was in accordance with the Appraisal and Valuation Standards (January 2014) published by The Royal Institution of Chartered Surveyors. 
The valuation of the property was on the basis of Market Value for the existing use as a licensed operating hotel, inclusive of the trade furniture, furnishings and equipment, in the sum of £11,250,000. The valuer's opinion of Market Value was primarily derived using comparable recent market transactions on arm's length terms.  The accounts reflect a reduction for a partial disposal of land in a prior year.  A valuation of £4,131,424 (2022 - £4,131,424) has been allocated to land which is not depreciated. The directors consider the valuation net of depreciation to date to be remain appropriate.

Cost or valuation at 28 February 2023 is as follows:

Freehold property
£


At cost
7,954,212
At valuation:

Market Valuations - 13/05/2015
3,027,212



10,981,424

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£



Cost
7,954,212
7,954,212

Accumulated depreciation
(5,648,788)
(5,489,704)

Net book value
2,305,424
2,464,508

The net book value of fixtures and fittings held under hire purchase is £nil (2022 - £nil).

Page 22
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

13.


Fixed asset investments





Unlisted investments

£



Cost or valuation


At 1 March 2022
442,113



At 28 February 2023

442,113



Impairment


At 1 March 2022
332,113


Charge for the period
2,000



At 28 February 2023

334,113



Net book value



At 28 February 2023
108,000



At 28 February 2022
110,000

The company holds a 22.5% shareholding, representing £100,000 of the investment net book value above, in The Tivoli Theatre Company Limited, a company incorporated in Scotland. 
In previous years the company advanced loans to Loaf & Fish Limited of which £8,000 (2022 - £10,000) remains outstanding at the year end.


14.


Stocks

2023
2022
£
£

Finished goods and goods for resale
98,834
118,092

98,834
118,092


Page 23
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

15.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
132,787
132,787

132,787
132,787


The other debtors amount above is in relation to a shareholder loan, refer to Note 25 for details.

2023
2022
£
£

Due within one year

Trade debtors
188,334
115,373

Amounts owed by group undertakings
39,994
39,994

Other debtors
83,955
42,793

Prepayments and accrued income
51,469
45,227

Tax recoverable
35,675
921,008

399,427
1,164,395



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
394,457
603,553

394,457
603,553



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans (Note 20)
291,696
368,918

Trade creditors
106,905
64,471

Amounts owed to group undertakings
517,395
531,643

Corporation tax
-
56,034

Other taxation and social security
112,565
65,694

Other creditors
116,795
128,123

Accruals and deferred income
298,269
346,658

1,443,625
1,561,541


Refer to note 19 for details of security held by the bank in respect of the bank loan and overdraft.

Page 24
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

18.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans (Note 20)
2,892,657
3,520,476

2,892,657
3,520,476


Refer to note 19 for details of security held by the bank in respect of the bank loan and overdraft.


19.


Secured Loans

The bank loan and overdraft are secured by a standard security over the company's land and buildings at Pitfodels, Aberdeen; a cross corporate guarantee between Marcliffe Hotel Limited, Pitfodels Holdings Limited and third parties; a bond and floating charge over the assets of the company. 


20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
291,696
368,918


291,696
368,918

Amounts falling due 1-2 years

Bank loans
291,696
355,654


291,696
355,654

Amounts falling due 2-5 years

Bank loans
875,089
1,050,713


875,089
1,050,713

Amounts falling due after more than 5 years

Bank loans
1,725,872
2,114,109

1,725,872
2,114,109

3,184,353
3,889,394


At the year end the company has one loan facility in place.  The loan is repayable in instalments with the final payment being due in January 2034.  Interest is charged on this loan at base rate plus 2.7% per annum. 

Page 25
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

21.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
394,457
603,553

Financial assets that are debt instruments measured at amortised cost
407,353
330,947

801,810
934,500


Financial liabilities


Financial liabilities measured at amortised cost
(3,990,902)
(4,667,848)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets measured at amortised cost comprise trade debtors, other debtors, and accrued income. 


Financial liabilities measured at amortised cost comprise trade creditors, loans and bank overdrafts, accruals and other creditors.


22.


Deferred taxation




2023


£






At beginning of year
175,565


Charged to profit or loss
35,383



At end of year
210,948

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
80,297
44,559

Short term timing differences
(1,650)
(1,295)

Capital gains
132,301
132,301

210,948
175,565

Page 26
 

 
MARCLIFFE HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



40,101 (2022 - 40,101) Ordinary shares of £1.00 each
40,101
40,101



24.


Pension commitments

The company contributes to a defined contribution pension scheme and also makes discretionary contributions to personal pension plans. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and is disclosed within note 7. 


25.
Related party transactions

The company has taken advantage of the exemption given by Financial Reporting Standard 102, section    33 which allows exemption from disclosure of related party transactions with other companies within the group which are consolidated.


Related party
Transaction
£ 
Debtor/(creditor) 
at the year end 
£ 

Shareholder (in parent company)
Loan
44,591
(47,072)

Director
Loan
4,480
46,238

Shareholder (in parent company)
Loan
-
132,787


26.


Controlling party

The ultimate controlling party throughout the current and previous year is The Stewart Spence Family Trust, by virtue of their holding in the parent company, Pitfodels Holdings Limited.
The only group in which the results of the company are consolidated is that headed by Pitfodels Holdings Limited. The consolidated accounts of this company are available to the public and may be obtained from the Registrar of Companies. 

Page 27