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REGISTERED NUMBER: 11234238 (England and Wales)


















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE PERIOD 1 FEBRUARY 2022 TO 31 MAY 2023

FOR

SNOWDONIA HOTEL LIMITED

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)






CONTENTS OF THE FINANCIAL STATEMENTS
for the Period 1 February 2022 to 31 May 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 15


SNOWDONIA HOTEL LIMITED

COMPANY INFORMATION
for the Period 1 February 2022 to 31 May 2023







DIRECTORS: Martin Ainscough
Andrew John Ainscough
Danielle Louise Hitchen
Stephen Hitchen
Barry John Smith



REGISTERED OFFICE: Oakland House
21 Hope Carr Road
Leigh
WN7 3ET



REGISTERED NUMBER: 11234238 (England and Wales)



AUDITORS: Fairhurst
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB



BANKERS: Coutts & Co
440 Strand
London
WC2R 0QS

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

STRATEGIC REPORT
for the Period 1 February 2022 to 31 May 2023

The directors present their strategic report for the period 1 February 2022 to 31 May 2023.

REVIEW OF BUSINESS
The company made an operating profit for the 16 month period to 31 May 2023 of £245k (loss of £445k for the 12 months to 31 January 2022) of which £189k were exceptional costs (2022 - £417k).

The company generated £834k (net) from its operating activities during the period.

Senior Management are confident that the hotel is in a strong position to improve the results in the forthcoming year, and would like to thank the staff and customers for their ongoing support during these challenging economic times.

Key Performance Indicators (KPI's)
There are a number of financial KPI's including:-

Turnover for 2023 amounted to £6,322k (2022: £3,525k), with Gross profit achieved of £5,433k (2022:£2,975k)

Adjusted EBITDA for 2023 totalled £1,180k (2022: £32k).

Additional non financial KPI's include customer reviews and staff welfare and development.

RISKS AND UNCERTAINTIES
The company's activities expose it to a number of financial risks, as set out below.

Assets, Cash Flow and Credit Risks
The majority of hotel guests pay by debit, credit card or bank transfer and cash collection is rigorously monitored. The company's principal financial assets are fixed assets and cash at bank. Fixed assets are inspected regularly for wear and tear and a refurbishment programme is constantly reviewed. Deposits are taken in advance for weddings and other large corporate events; the majority of which have been deferred until 2023/24.

Utility costs
The company has fixed certain utility costs, but remains exposed to energy price rises in 2023/24.

Competition
There are a number of alternative hotels and leisure facilities in the area, but the location, pricing strategy and refurbishment of facilities means the company remains in a strong position, both reputationally and financially.

ON BEHALF OF THE BOARD:





Martin Ainscough - Director


24 November 2023

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

REPORT OF THE DIRECTORS
for the Period 1 February 2022 to 31 May 2023

The directors present their report with the financial statements of the company for the period 1 February 2022 to 31 May 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of operating a hotel in North Wales.

DIVIDENDS
No dividends will be distributed for the period ended 31 May 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report.

Martin Ainscough
Andrew John Ainscough
Danielle Louise Hitchen
Stephen Hitchen

Other changes in directors holding office are as follows:

David Philip Richard Watson - resigned 1 November 2022
Barry John Smith - appointed 3 March 2022
Andrew Baker - appointed 3 March 2022 - resigned 11 August 2022

GOING CONCERN
The company's loan and equity providers have indicated their continued financial support and on this basis, taking into account recent forecasts and trading results, the directors believe the company has adequate resources to continue its activities for the foreseeable future.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

REPORT OF THE DIRECTORS
for the Period 1 February 2022 to 31 May 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





Martin Ainscough - Director


24 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SNOWDONIA HOTEL LIMITED

Opinion
We have audited the financial statements of Snowdonia Hotel Limited (the 'company') for the period ended 31 May 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2023 and of its loss for the period then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SNOWDONIA HOTEL LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SNOWDONIA HOTEL LIMITED


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- we identified the laws and regulations applicable to the company through discussions with directors and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation, Health and Safety regulations and food safety regulations.

- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above;

- we enquired of the directors about actual and potential litigation and claims.

Due to inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

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 Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SNOWDONIA HOTEL LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




John B S Fairhurst BA(Hons) FCA (Senior Statutory Auditor)
for and on behalf of Fairhurst
Statutory Auditor
Chartered Accountants
Douglas Bank House
Wigan Lane
Wigan
Lancashire
WN1 2TB

24 November 2023

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

STATEMENT OF COMPREHENSIVE
INCOME
for the Period 1 February 2022 to 31 May 2023

Period
1/2/22
to Year Ended
31/5/23 31/1/22
Notes £    £   

TURNOVER 6,321,687 3,525,162

Cost of sales 888,861 549,935
GROSS PROFIT 5,432,826 2,975,227

Administrative expenses 5,358,424 3,516,074
74,402 (540,847 )

Other operating income 170,668 96,000
OPERATING PROFIT/(LOSS) 245,070 (444,847 )

Intercompany loan provision 5 1,213,510 -
(968,440 ) (444,847 )

Interest receivable and similar income 2,023 36
(966,417 ) (444,811 )

Interest payable and similar expenses 6 658,027 169,725
LOSS BEFORE TAXATION 7 (1,624,444 ) (614,536 )

Tax on loss 8 - 28
LOSS FOR THE FINANCIAL PERIOD (1,624,444 ) (614,564 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD

(1,624,444

)

(614,564

)

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

STATEMENT OF FINANCIAL POSITION
31 May 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 13,498,836 14,139,475

CURRENT ASSETS
Stocks 10 26,332 19,504
Debtors 11 120,149 267,844
Cash at bank and in hand 815,191 531,405
961,672 818,753
CREDITORS
Amounts falling due within one year 12 6,546,046 2,152,117
NET CURRENT LIABILITIES (5,584,374 ) (1,333,364 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,914,462

12,806,111

CREDITORS
Amounts falling due after more than one
year

13

8,385,332

11,652,537
NET (LIABILITIES)/ASSETS (470,870 ) 1,153,574

CAPITAL AND RESERVES
Called up share capital 16 2,000,100 2,000,100
Retained earnings 17 (2,470,970 ) (846,526 )
SHAREHOLDERS' FUNDS (470,870 ) 1,153,574

The financial statements were approved by the Board of Directors and authorised for issue on 24 November 2023 and were signed on its behalf by:





Martin Ainscough - Director


SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

STATEMENT OF CHANGES IN EQUITY
for the Period 1 February 2022 to 31 May 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 February 2021 2,000,100 (231,962 ) 1,768,138

Changes in equity
Total comprehensive income - (614,564 ) (614,564 )
Balance at 31 January 2022 2,000,100 (846,526 ) 1,153,574

Changes in equity
Total comprehensive income - (1,624,444 ) (1,624,444 )
Balance at 31 May 2023 2,000,100 (2,470,970 ) (470,870 )

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

STATEMENT OF CASH FLOWS
for the Period 1 February 2022 to 31 May 2023

Period
1/2/22
to Year Ended
31/5/23 31/1/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,492,517 209,141
Interest paid (658,027 ) (169,725 )
Tax paid - (28 )
Net cash from operating activities 834,490 39,388

Cash flows from investing activities
Purchase of tangible fixed assets (321,471 ) (2,012,963 )
Sale of tangible fixed assets 26,725 -
Interest received 2,023 36
Net cash from investing activities (292,723 ) (2,012,927 )

Cash flows from financing activities
New loans in year - 1,648,136
Loan repayments in year (123,572 ) (990,657 )
Amounts from associated companies 2,531,019 2,102,808
Amounts to associated companies (2,665,428 ) (829,188 )
Net cash from financing activities (257,981 ) 1,931,099

Increase/(decrease) in cash and cash equivalents 283,786 (42,440 )
Cash and cash equivalents at beginning of
period

2

531,405

573,845

Cash and cash equivalents at end of
period

2

815,191

531,405

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE STATEMENT OF CASH FLOWS
for the Period 1 February 2022 to 31 May 2023

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
Period
1/2/22
to Year Ended
31/5/23 31/1/22
£    £   
Loss before taxation (1,624,444 ) (614,536 )
Depreciation charges 945,565 476,511
Profit on disposal of fixed assets (10,180 ) -
Provision against intercompany loan 1,154,647 -
Finance costs 658,027 169,725
Finance income (2,023 ) (36 )
1,121,592 31,664
Increase in stocks (6,828 ) (19,504 )
Decrease/(increase) in trade and other debtors 147,695 (199,847 )
Increase in trade and other creditors 230,058 396,828
Cash generated from operations 1,492,517 209,141

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Period ended 31 May 2023
31/5/23 1/2/22
£    £   
Cash and cash equivalents 815,191 531,405
Year ended 31 January 2022
31/1/22 1/2/21
£    £   
Cash and cash equivalents 531,405 573,851
Bank overdrafts - (6 )
531,405 573,845


SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE STATEMENT OF CASH FLOWS
for the Period 1 February 2022 to 31 May 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1/2/22 Cash flow At 31/5/23
£    £    £   
Net cash
Cash at bank and in hand 531,405 283,786 815,191
531,405 283,786 815,191
Debt
Debts falling due within 1 year (150,000 ) (180,034 ) (330,034 )
Debts falling due after 1 year (5,883,606 ) 303,606 (5,580,000 )
(6,033,606 ) 123,572 (5,910,034 )
Total (5,502,201 ) 407,358 (5,094,843 )

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE FINANCIAL STATEMENTS
for the Period 1 February 2022 to 31 May 2023

1. STATUTORY INFORMATION

Snowdonia Hotel Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

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

Going concern
The company's loan and equity providers have indicated their continued financial support and on this basis, taking into account recent forecasts and trading results, the directors believe the company has adequate resources to continue its activities for the foreseeable future.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates and value added tax.

The company recognises revenue when rooms are occupied, food and beverage are sold and other services are provided.

Tangible fixed assets
Tangible fixed assets are stated at initial cost, including interest on borrowing, plus the additional development expenditure necessary to bring the assets into operational use, less depreciation and impairment.

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Long leasehold land and buildings- 2% on cost (buildings only)
Plant and machinery- 20% on reducing balance
Fixtures and fittings- 20% on reducing balance
IT equipment and motor vehicles- 25% on reducing balance

Impairment of assets
At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amounts. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the profit and loss.

Where an impairment loss subsequently reverses, the carrying amount of each asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately.

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell.

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 February 2022 to 31 May 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company holds basic financial instruments under Section 11 of FRS 102.

Short term financial assets, including trade and other debtors and cash and bank balances, are measured at the transaction price.

Short term financial liabilities, including trade and other creditors, are measured at the transaction price.
Financial liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due.

Financial liabilities, including directors and other loans, that have no stated interest rate and are payable after one year should be measured at amortised cost, using the effective interest rate method.

Taxation
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Grants
Capital grants are treated as deferred income and written off over the life of the assets to which they relate.

Revenue grants, mainly from Government bodies, are recognised in the profit and loss in the period to which they relate.

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 February 2022 to 31 May 2023

3. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

These estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised where the revision affects only that
period, or in the period of the revision and future periods where the revision affects both current and future
periods.

Critical judgements
At the end of the year, the directors do not consider that there were any critical judgements which have a
significant risk of causing a material adjustment to the carrying amount of assets and liabilities.

Key sources of estimation uncertainty
The main judgements applied in preparing these financial statements concern the carrying value of the company's tangible fixed assets.

4. EMPLOYEES AND DIRECTORS
Period
1/2/22
to Year Ended
31/5/23 31/1/22
£    £   
Wages and salaries 2,059,196 1,294,905
Social security costs 110,735 70,302
Other pension costs 21,220 10,597
2,191,151 1,375,804

The average number of employees during the period was as follows:
Period
1/2/22
to Year Ended
31/5/23 31/1/22

Administration 1 1
Direct staff 60 61
61 62

Period
1/2/22
to Year Ended
31/5/23 31/1/22
£    £   
Directors' remuneration - -

5. EXCEPTIONAL ITEMS

Included within expenses are exceptional costs of £188,750 (2022 - £417,024) relating to septic tank charges resulting from late connection to mains services. In addition there is an intercompany loan provision of £1,213,510.

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 February 2022 to 31 May 2023

6. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
1/2/22
to Year Ended
31/5/23 31/1/22
£    £   
Bank interest 436,258 135,294
Other interest 221,769 34,431
658,027 169,725

7. LOSS BEFORE TAXATION

The loss is stated after charging/(crediting):

Period
1/2/22
to Year Ended
31/5/23 31/1/22
£    £   
Hire of plant and machinery 153,212 82,945
Other operating leases 48,700 -
Depreciation - owned assets 945,565 476,511
Profit on disposal of fixed assets (10,180 ) -
Auditors' remuneration 10,000 8,500
Government grant income (170,668 ) (96,000 )

8. TAXATION

Analysis of the tax charge
The tax charge on the loss for the period was as follows:
Period
1/2/22
to Year Ended
31/5/23 31/1/22
£    £   
Current tax:
Tax - prior year - 28
Tax on loss - 28

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 February 2022 to 31 May 2023

8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period
1/2/22
to Year Ended
31/5/23 31/1/22
£    £   
Loss before tax (1,624,444 ) (614,536 )
Loss multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

(308,644

)

(116,762

)

Effects of:
Expenses not deductible for tax purposes 1,900 726
Adjustments to tax charge in respect of previous periods - 28
Deferred tax not provided 135,930 25,499
Fixed asset differences 170,814 90,537
Total tax charge - 28

9. TANGIBLE FIXED ASSETS
Long IT
leasehold Fixtures equipment
land and Plant and and & motor
buildings machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 February 2022 13,857,677 3,559 521,824 232,926 14,615,986
Additions 258,382 31,920 31,169 - 321,471
Disposals - - (10,475 ) (9,318 ) (19,793 )
At 31 May 2023 14,116,059 35,479 542,518 223,608 14,917,664
DEPRECIATION
At 1 February 2022 374,228 344 65,674 36,265 476,511
Charge for period 745,625 8,334 126,915 64,691 945,565
Eliminated on disposal - - (725 ) (2,523 ) (3,248 )
At 31 May 2023 1,119,853 8,678 191,864 98,433 1,418,828
NET BOOK VALUE
At 31 May 2023 12,996,206 26,801 350,654 125,175 13,498,836
At 31 January 2022 13,483,449 3,215 456,150 196,661 14,139,475

Capitalised within the cost of long leasehold land and buildings is £Nil (2022: £118,728) of interest on borrowing costs.

10. STOCKS
2023 2022
£    £   
Stocks 26,332 19,504

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 February 2022 to 31 May 2023

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 54,848 69,246
Other debtors 58,168 35,575
VAT debtor - 102,332
Prepayments and accrued income 7,133 60,691
120,149 267,844

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14) 330,034 150,000
Trade creditors 326,370 307,228
Amounts owed to associated undertakings 4,338,653 525,484
Social security and other taxes 378,668 21,998
Other creditors 85,872 202,416
Accruals and deferred income 958,449 816,991
Deferred government grants 128,000 128,000
6,546,046 2,152,117

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 14) 5,580,000 5,883,606
Amounts owed to associated undertakings - 2,792,931
Deferred government grants 2,805,332 2,976,000
8,385,332 11,652,537

14. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 330,034 150,000

Amounts falling due between one and two years:
Bank loans 240,000 215,000

Amounts falling due between two and five years:
Bank loans 5,340,000 5,668,606

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 February 2022 to 31 May 2023

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 5,910,034 6,033,606
Associated undertakings loan 4,338,653 2,792,931
10,248,687 8,826,537

There is a debenture in favour of the Bank secured over the leasehold property together with a fixed and floating charge over all the property of the company.

The associated undertaking loan is also secured by a debenture over the leasehold property and there is a composite guarantee between Adventure Parc Snowdonia Limited and Snowdonia Hotel Limited.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
100 Ordinary 1 100 100
2,000,000 Ordinary A 1 2,000,000 2,000,000
2,000,100 2,000,100

17. RESERVES
Retained
earnings
£   

At 1 February 2022 (846,526 )
Deficit for the period (1,624,444 )
At 31 May 2023 (2,470,970 )

18. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The pension cost for the period represents contributions payable by the company to the fund and amounted to £21,220 (2022 - £10,597). As at the period end there were £3,214 (2022 - £4,109) contributions outstanding.

19. RELATED PARTY DISCLOSURES

Transactions with associated undertakings
During the year the company made payments of £2,510,900 and received £311,990 from associated undertakings. During the year the company made purchases of £647,266 (2022 - £1,057,023) and made cost recharges of £128,487 (2022 - £607,601) from associated undertakings. As at 31 May 2023 £1,154,647 (31 January 2022 - (£525,484)) was due from/to associated undertakings, against which a 100% provision has been included in the accounts.

Associated undertakings loan
During the year the company borrowed £1,349,995 (2022 - £795,000), incurred interest and charges of £221,768 (2022 - £50,785) from associated undertakings and made payments of £26,041 (2022 - £21,587). As at 31 May 2023 £4,338,653 (31 January 2022 - £2,792,931) was due to associated undertakings.

SNOWDONIA HOTEL LIMITED (REGISTERED NUMBER: 11234238)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Period 1 February 2022 to 31 May 2023

20. ULTIMATE CONTROLLING PARTY

Snowdonia Hotel Limited is under the control of its directors.